Unformatted text preview: with potential entrance. (enter or not game) Monopolistic Competition (location is one of reason for price)-Just like in Perfect competition, large number of firms freely enters and exits. -But in contest o Degree of production differentiation o Firms compete in price, quantity, and marketing o Firms in monopolistic competition market to set price o Each firm will face its own demand curve-Price and output decision o MR=MC and tract up to Demand and compare to AC. o Just like Perfect competition, economic profit in the long run will be zero....
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This note was uploaded on 12/02/2009 for the course ECON econ taught by Professor For got during the Spring '09 term at UCSD.
- Spring '09
- for got