If a new firm enters into a monopolist competition market, We would expect the economic profit of the existing firms to

1 answer:

5 0

Long-term economic profits for all businesses are zero. Its quantity demanded will be tangent towards its average-total-cost curve whenever a profit-maximizing firm inside a monopolistic competitive market is generating its long-run Equilibrium quantity. The business makes no economic profit.

<h3>What is the Equilibrium Quantity?</h3>

An Equilibrium Quantity is neither in short supply nor when supply and demand cross, the amount of a good that consumers desire to buy is equivalent to the amount that its manufacturers are supplying.

The price and quantity function can be solved to determine the equilibrium quantity (Qa - bP = x + YP). An equilibrium price can be determined by solving the equation whenever the supply and demand are equal. To determine the quantity, enter the equilibrium price into the supply or demand function.

Learn more about the Equilibrium Quantity here: brainly.com/question/28527601

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