Will there be economic profits in the long run in a, Ask an Expert

Economics

a) Will there be economic profits in the long run in a monopolistic competitive market? Explain your answer.

b) " Firms in monopolistic competition are not producing at minimum average cost. They are said to have excess capacity." Explain the statement. Why the firms under monopolistic competition are not producing at minimum average cost? Explain and support your answer using one example.

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9473387

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