Use a Diagram to Explain Why a Monopolistically Competitive Industry

question 143

Essay

Use a diagram to explain why a monopolistically competitive industry is not as efficient as a competitive industry, even though firms do not earn an economic profit when their industries are in long-run equilibrium.

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Definitions:

Benefit Highlighting

The practice of emphasizing the advantages or positive aspects of a product, service, or opportunity to persuade or inform an audience.

Trouble

A state of distress, difficulty, or need; situations that cause discomfort or problems.

Non-Compliance

Failure or refusal to act in accordance with set rules, regulations, or standards.

Fair Adjustment

An equitable modification or change made to resolve a dispute or correct an imbalance.