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Graphically Show the Transition from Short-Run to Long-Run Equilibrium for a Monopolistic

question 20

Essay

Graphically show the transition from short-run to long-run equilibrium for a monopolistic competitor. Begin by drawing a graph of short-run equilibrium. In the graph, have the firm make an economic profit at its profit-maximizing level of output. Identify its short-run profit, and then show and describe how profits will disappear in long-run equilibrium.


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Laws or regulations that limit or regulate certain activities or behaviors in order to protect public interest.

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Feelings that are unpleasant or undesirable, such as sadness, anger, or fear.

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