12/6/2023 0 Comments When new firms enter a perfectly competitive market the short run makrte supply curve shifts right![]() This is because, in order to sell more, the firm has to decrease the price.Ī firm under Monopolistic Competition can either earn normal profits, super-normal profits, or incur losses. Under Monopolistic Competition, the revenue curves are downward sloping (like under Monopoly). In this case, the demand curve has a steeper slope.Ī Firm’s Short-Run Equilibrium under Monopolistic Competition In such cases, the firm needs to slash its prices further to achieve an increase in demand. ![]()
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