In Long-Run Equilibrium in Both Perfect Competition and Monopolistic Competition

question 16

Essay

In long-run equilibrium in both perfect competition and monopolistic competition there is zero economic profit and yet the two cases are not identical. What is the key difference between them?

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Definitions:

Nitrogenous Waste

Waste products containing nitrogen, such as ammonia, urea, or uric acid, produced by the metabolism of proteins and nucleic acids.

Freshwater Fishes

A diverse group of fish species that spend most or all of their lives in freshwater habitats such as lakes, rivers, and ponds, contrasting with saltwater or marine fishes.

Ammonia

A colorless gas with a characteristic pungent smell, NH3, used in industrial and cleaning products and produced by living organisms during metabolism.

Transports

The movement of substances across cell membranes or within organisms or cells, critical for processes such as nutrient uptake and waste removal.