Use a Graph to Demonstrate Why a Profit-Maximizing Monopolistically Competitive

question 137

Short Answer

Use a graph to demonstrate why a profit-maximizing monopolistically competitive firm must operate at excess capacity. Explain why a perfectly competitive firm is not subject to the same constraint.

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Definitions:

Run-on Sentence

A grammatically flawed sentence in which two or more independent clauses are connected improperly without punctuation or conjunction.

Antecedent

A word, phrase, or clause that is represented by another word or expression (such as a pronoun).

Semicolon

A punctuation mark (;) used to connect independent clauses in a sentence or to separate items in a complex list.

Investment

The act of allocating resources, usually money, with the expectation of generating an income or profit.