No Bull Economics Lessons

Macroeconomics & Microeconomics Concepts You Must Know

Essential Questions

How do you graph a monopolistically competitive firm with a short-run profit?

Posted on April 16, 2014 at 7:45 PM

The cost curves of a monopolistically competitive firm look similar to a monopoly firm's curves. However, by definition monopolistic competition (many firms) is very different from a monopoly (one firm).


To graph a monopolistically competitive firm earning a short-run economic profit, the price must exceed the average total cost curve at the MR=MC level of output.


In the long run, more firms will enter the industry casuing the firm to break even.


In this No Bull Review video, you will learn how to graph a firm with a short-run profit under monopolistic competition.

You need Adobe Flash Player to view this content.


AP Microeconomics Unit 2 Product Markets 

Categories: AP Microeconomics, Micro Unit 2 Product Markets

Post a Comment

Oops!

Oops, you forgot something.

Oops!

The words you entered did not match the given text. Please try again.

You must be a member to comment on this page. Sign In or Register

0 Comments

iPhone Apps by Mr. Medico

   


Mr. Medico's Review Books (Paperback)