If Monopolistically Competitive Firms Have Some Control Over Their Prices

question 40

Essay

If monopolistically competitive firms have some control over their prices, why don't they set price above average total cost so they will realize an economic profit in the long run?

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Definitions:

Emotionally Distant

A state or behavior where an individual is not easily accessible on an emotional level, often appearing aloof or detached.

Lose Touch

The gradual fading of communication or connection between individuals, often resulting in a loss of relationship or awareness.

Sibling Rivalry

A type of competition or animosity among siblings, whether blood-related or not, often for parental attention, love, or recognition.

Middle Age

A period of adult life typically ranging from about 45 to 65, often characterized by stability in career and relationships, but also challenges such as health issues and caregiving responsibilities.