a monopolistically competitive firm is a firm that has sale a differentiated product such as toothpaste and shoes. such a firm is a price taker. such a firm likes to hire very smart people to ask...
In the long run, if a firm is making a profit more firms will enter. This will cause profit to drop. Firms will eventually drop out because of this and economic profit will makes it way to zero(a...
Because monopolistically competitive firms have an optimal production allocation at monopoly values: marginal revenue = marginal cost, marking-up to the demand function. When competition is not...