If monopolistically competitive firms have some control over their price, why don’t they set price above ATC so they will realize an economic profit in the long run?
If monopolistically competitive firms have some control over their price, why don’t they set price above ATC so they will realize an economic profit in the long run?
Chapter26: Monopolistic Competition And Oligopoly
Section: Chapter Questions
Problem 2E
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- If monopolistically competitive firms have some control over their price, why don’t they set price above
ATC so they will realize an economic profit in the long run? - Why do monopolistically competitive firms spend funds for the product development and advertising when this practice only adds to the firm’s costs?
- Explain how concentration ratios and barriers to entry into the market relate to
Monopolistic Competition and Oligopoly
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