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Softa [21]
2 years ago
6

How does the​ long-run equilibrium for a monopolistically competitive market differ from the​ long-run equilibrium for a perfect

ly competitive​ market?
Physics
1 answer:
Katen [24]2 years ago
3 0

Answer and Explanation:

The main difference between monopolistic competition and perfect competitive market are given bellow

Excess capacity : There is constantly an overabundance limit in monopolistic challenge and not in the ideal challenge. Over the long haul, superbly aggressive firms produce at the proficient scale,where as monopolistically focused firms produce beneath this level. Firms are said to have abundance limit under monopolistic challenge. As it were, a monopolistically focused firm, in contrast to a splendidly aggressive firm, could build the amount it delivers and lower the normal all out expense of generation.

Markup over marginal cost:   the another distinction between flawless challenge and monopolistic challenge is the connection among cost and minor expense. At an aggressive firm consistently cost equivalents negligible expense. Where as, in monopolistically aggressive firm, cost surpasses minimal expense becouse the firm consistently have some market control.

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