Question

in the long run, the representative firm in monopolistic competition tends to have multiple choice excess capacity. economic profits. a perfectly elastic demand curve. no product differentiation.

Answer 1

Due to its ease of accommodating an increase in production, the representative firm in monopolistic competition typically has excess capacity over time.

What will happen if a monopolistic, rival business raises its price?

However, customers have the option to purchase a comparable product from another company if a monopolistic rival increases its price. When a dominant rival raises prices, it will not lose as many clients as a business operating in perfect competition, but it will lose more clients than a monopoly.

Why does monopolistic competition have excess capacity?

Natural monopolies or monopolistic competition both have excess capacity as a feature. It could take place as a result of businesses having to make lumpy or indivisible investments to boost capacity as demand rises.

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

#SPJ4