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  • Monopoly 2

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    RAVI DENIZE
    28 views8 pages
    The document discusses monopolistic competition, which exists when there are many firms producing similar but differentiated products. Under monopolistic competition, firms act independently and set prices along their perceived demand curves in the short run. In the long run, excess capacity arises from downward sloping demand curves, and firms will adjust output levels until price equals minimum average cost and the industry reaches long-run equilibrium.

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    monopoly 2

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    The document discusses monopolistic competition, which exists when there are many firms producing similar but differentiated products. Under monopolistic competition, firms act independently and set prices along their perceived demand curves in the short run. In the long run, excess capacity arises from downward sloping demand curves, and firms will adjust output levels until price equals minimum average cost and the industry reaches long-run equilibrium.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    28 views8 pages

    Monopoly 2

    Uploaded by

    RAVI DENIZE
    The document discusses monopolistic competition, which exists when there are many firms producing similar but differentiated products. Under monopolistic competition, firms act independently and set prices along their perceived demand curves in the short run. In the long run, excess capacity arises from downward sloping demand curves, and firms will adjust output levels until price equals minimum average cost and the industry reaches long-run equilibrium.

    Copyright:

    © All Rights Reserved
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    of 8

    Ch (

    MONOPoLISTIC
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