Why does the firm's demand curve become more elastic in a monopolistically competitive market as more firms enter the market?
Answer to relevant QuestionsIn perfect competition, imitators dampen the innovating spirit of innovators. Explain. Perfectly competitive firms in long-run equilibrium produce at the lowest point on their ATC curve. They produce at maximum efficiency. Yet, producing at an output that generates maximum efficiency isn't their intent. Why, ...How does the behavior of an oligopolist differ from the behavior of a monopolist? From a firm in perfect competition? From a firm in monopolistic competition? Why do firms in oligopoly produce many brands of the same good? Graph a kinked demand curve and its corresponding marginal revenue curve.
Post your question