Monopolistic competition 5.0 / 5 based on 1 ratingTeacher recommended ? EconomicsMonopolyA2/A-levelOCR Created by: JadeCreated on: 01-12-12 12:41 What is monopolistic competition? Monopolistic competition is a market structure with many firms producing a differentiated product where there are few barriers to entry and exit 1 of 7 In monopolistic competition, the demand curve is ? Relatively elastic 2 of 7 Firms in monopolistic competition are only going to make what profit in the long run? Normal profit 3 of 7 Monopolistically competitive firms have _________ - this is because their products are differentiated. Some price making power 4 of 7 In both short run and long run - in terms of allocative efficiency... P>MC 5 of 7 In monopolistic competition, is being productive efficiency achieved? Productive efficiency is not being achieved, since in the short run and long run, the firm is operating on the downward-sloping part of the AC curve 6 of 7 Given the product differentiation, it should be clear that firms in monopolistic competition compete through ? Non-price competition 7 of 7
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