In both perfectly competitive and monopolistically competitive markets, when firms are making positive economic profits, other firms

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In both perfectly competitive and monopolistically competitive markets, when firms are making positive economic profits, other firms will enter until price equals ATC and profits are zero. Despite these similarities, in a perfectly competitive market total surplus is maximized, while in a monopolistically competitive market surplus is not maximized. Explain this difference.
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Microeconomics

ISBN: 978-1259163531

1st edition

Authors: Dean Karlan, Jonathan Morduch

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