monopolistic competition Flashcards
1
Q
why is monopolistic competition between perfect competition & monopoly?
A
monopolistic competition hv many sellers, each of which is small compared with d market.
seller offers a somewhat different product
2
Q
the monopolistic competitive firm follows a monopolist’s rule for profit maximization…
A
it produces the quantity at which marginal revenue equals marginal cost
&
then uses its demand curve to find the price at which it can sell that quantity.
