monopolistic competitor is similar to a monopolist in that

Question

Quizplus · Accepted Answer

A monopolistic competitor has some degree of market power, meaning it has the ability to influence the price of its product. This is similar to a monopolist, who has complete market power. However, a monopolistic competitor does not necessarily earn positive economic profit in the long run, as it faces competition from other similar firms in the market. The firm produces the output at which its long-run average cost is at a minimum, but this may not be the same as the output that maximizes profit.

Monopolistic Competitor Is Similar to a Monopolist in That