Monopolies can earn positive economic profits in the long run while monopolistically competitive firms cannot due to
A) economies of scale in monopolies but not in monopolistic competition.
B) barriers to entry in monopoly but not in monopolistic competition.
C) market power of monopolies while monopolistically competitive firms have no market power.
D) the less elastic demand faced by monopolies as compared to monopolistically competitive firms.
Correct Answer:
Verified
Q225: Because they produce where P > MC,
Q226: Monopolistically competitive firms in long-run equilibrium produce
Q227: The long-run equilibrium for a monopolistically competitive
Q228: Monopolistically competitive firms experience "excess capacity" in
Q229: We know that monopolistically competitive firms prevent
Q230: The long-run equilibrium for a monopolistically competitive
Q231: Monopolistically competitive firms fail to fully realize
Q232: Product differentiation can lead to gains in
Q234: Monopolies can _ in the long run
Q235: In long-run equilibrium in monopolistic competition, P
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents