In the case of monopolistic competition,
A)Short run supply curve cannot be defined
B)MR curve cannot be defined
C)AR curve cannot be defined
D)None of the above

Name: In the case of monopolistic competition, A)Short run supply curve cannot be defined B)MR curve cannot be defined C)AR curve cannot be defined D)None of the above
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Question

Quizplus · Accepted Answer

In monopolistic competition, firms face a downward-sloping demand curve, and thus a supply curve cannot be defined in the short run as it can in perfect competition.

In the Case of Monopolistic Competition