Asked by
Roxana Castillo
on Nov 26, 2024
Verified
In the long run, the economic profits for a monopolistically competitive firm will be
A) the same as the profits for a monopolist.
B) slightly less than the profits of a monopolist.
C) the same as the profits for a purely competitive firm.
D) slightly more than the profits of a purely competitive firm.
Economic Profits
The surplus remaining after deducting both the explicit and implicit costs from a firm's total revenues.
Monopolistically Competitive Firm
A company that operates in a market with many competitors, each offering a differentiated product, allowing for some degree of price control.
- Differentiate between short-run and long-run equilibriums in monopolistically competitive markets.
- Identify conditions under which monopolistically competitive firms can earn profits or incur losses.
Verified Answer
KM
Learning Objectives
- Differentiate between short-run and long-run equilibriums in monopolistically competitive markets.
- Identify conditions under which monopolistically competitive firms can earn profits or incur losses.
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