U9.1-Imperfect Competition

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8 Terms

1
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monopolistic competition has (entry and exit)

easy entry and exit

2
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monopolistic competition generates (what type of profit)

normal profit

3
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unique trait of monopolistic competition

firms offer slightly differentiated but similar products

4
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monopolistic competitions are (efficiency)

neither productively nor allocatively efficient

5
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in monopolistic competition, marginal revenue curve is

below demand curve

6
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when graphing long-run monopolistic competition chart, ATC curve is always

tangent to the demand curve at profit-maxxing quantity

7
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why do monopolistic competition always have excess capacity?

too many firms competing

8
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what does monopolistic competition do to the ATC curve

never reach minimum ATC