equilibrium in a monopolistically competitive industry

Related BrainMass Solutions

• Cost Curves in Perfect Competition and Monopolistic Competition

  What will happen to the number of firms in the new long-run equilibrium? C8 TQ7) The following graph shows a firm in a monopolistically competitive industry. See attached file for graph.

• current price, output and total cost data

  Under these same cost conditions, what is the monopolistically competitive low-price/high output equilibrium in this industry? What are industry profits? D.

• Monopolistically competitive

  Because there is free entry into monopolistically competitive markets, if firms earn short run profits, additional firms enter the industry in the long run to capture some of these profits.

• Monopoly and monopolistic competition

  If no firms IN the monopolistically competitive industry receive above-normal economic profit, then there is no incentive for other firms to enter the industry.

• Market Structure and the Behavior of the Firm

  On the other hand, since this industry is monopolistically competitive, each firm has some power of price setting. They will compete for market share by charging a price lower than any other producers.

• Discuss concentration ratios and predict long term adjustments

  At equilibrium in a monopolistically competitive market, all the firms in the market make an economic profit of zero.

• A monopolistically competitive market

  45068 A monopolistically competitive market What is required for a market to be considered monopolistically competitive? How does the equilibrium in a monopolistically competitive market resemble that in a perfectly competitive market?

• Findind equilbrium for monopolistically competitive firm

  192829 Findind equilbrium for monopolistically competitive firm At its current output level of X = 10, a monopolistically competitive firm has MR = 4, MC =4 ,ATC= 6, and P=8. Is this market in long-run equilibrium?

• Microeconomics

  In monopolistically competitive markets, however, equilibrium is achieved at a point of tangency between firm demand and average cost curves. This tangency typically occurs at an output level below the point of minimum long-run average costs.