Question

Compared to a purely competitive firm in long run equilibrium, the monpolistic competitor has a?

Answer 1

Compared to a purely competitive firm in long-run equilibrium, the monopolistic competitor has a higher price and lower output.

When a monopolistic competitive firm is in long-run equilibrium?

Long Run Monopolistic Competition Equilibrium: Over the long run, a company in a market with the monopolistic competition will produce several items at the point where the long-run marginal cost (LRMC) curve crosses the marginal revenue curve (MR). Where the quantity produced lies on the average revenue (AR) curve will determine the pricing.

What ultimately transpires to a monopolistic rival?

Long-term economic gains or losses in monopolistic competition will be removed by entry or leave, leaving firms with no economic gains. There will be some excess capacity in a monopolistically competitive business; this could be seen as the price paid for the variety of products that this market structure brings about.

Learn more about monopolistic competition: brainly.com/question/28189773

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