In long- run equilibrium under monopolistic competition, a firm will charge more than the market price under perfect competition, assuming the same average cost curves.

Question

Quizplus · Accepted Answer

In monopolistic competition, firms have some degree of market power due to product differentiation, allowing them to charge a higher price than in perfect competition, where firms are price takers and can only charge the market price.

In Long- Run Equilibrium Under Monopolistic Competition, a Firm Will