U9.1-Imperfect Competition

monopolistic competition has (entry and exit)

easy entry and exit

monopolistic competition generates (what type of profit)

normal profit

unique trait of monopolistic competition

firms offer slightly differentiated but similar products

monopolistic competitions are (efficiency)

neither productively nor allocatively efficient

in monopolistic competition, marginal revenue curve is

below demand curve

when graphing long-run monopolistic competition chart, ATC curve is always

tangent to the demand curve at profit-maxxing quantity

why do monopolistic competition always have excess capacity?

too many firms competing

what does monopolistic competition do to the ATC curve

never reach minimum ATC