Monopolistic Competition

(1 ) Take a look at the default exhibit in the Chapter 25 Interactive Graph section and signalise if you think it represents a long run counterpoise for a monopolistically competitive firm and whyYes this is a long run equilibrium for a monopolistic competitive firm because economic lucre is zero (MC MR ) and price is higher than marginal cost (2 ) accommodate an evaluation of monopolistic competition and oligopoly long run equilbrium in terms of allocative efficiency (P MC , productive efficiency (P moment AC , and the equity of income transfers (P AC in general2 .1 2 .1 .1 Allocative skill - (P MC MR ) is allocatively inefficient since the money spent by consumers (P ) is greater than the cost of production (MC2 .1 .2 Productive cleverness - In goods be produced inefficiently since production is not at its lowest maneuver as indicated by ATC Curve2 .1 .3 Equity of Resulting Income Tranfer - is equitable since attain is normal2 .2 Oligopoly2 .2 .

1 Allocative Efficiency - Oligopoly (P MC ) is allocatively inefficient since the money spent by consumers (P ) is greater than the cost of production (MC2 .2 .2 Productive Efficiency - In Oligopoly goods be produced inefficiently since production is not at its lowest locate as indicated by ATC Curve2 .1 .3 Equity of Resulting Income Tranfer - Oligopoly is inequitable . It produces economic profit since price is greater than average costReferencesC . MacConnell , S . Brue (2005 . Economics : Principles , Problems , and Policies , 16 /e . InterActive Graphs (Chapter 25 . Retrieved Nov 19 , 2006 from http /highered .mcgraw-hill .com /sites /student_view0 /chapter25 /interactive_graphs .html...If you indirect request to get a full essay, order it on our website: Ordercustompaper.com

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