Explore BrainMass
Share

equilibrium in a monopolistically competitive industry

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Carefully explain what will happen as we move from the short run to a long run equilibrium in a monopolistically competitive industry if firms are making a positive profit in the short run. Your explanation should clearly state what will happen to the demand curve facing an individual firm and the reason why this happens.

© BrainMass Inc. brainmass.com December 20, 2018, 5:32 am ad1c9bdddf
https://brainmass.com/economics/supply-and-demand/332060

Solution Preview

First, it is important to know that there is no barriers to entry in a monopolistic competitive market, in other words, firms ...

Solution Summary

equilibrium in a monopolistically competitive industry

$2.19