Question

Which of the following are the same under monopolistic competition and in a competitive market in the long run?

a. the markup the firm charges

b. the price the firm charges to consumers

c. the firm’s excess capacity

d. the average total cost of production

e. the amount of advertising

f. the firm’s profit '

g. the efficiency of the market structure

Answer 1

ANSWER :: (F) The Firms Profit

=>Explanation ::

->   Under The Monopolistic Competition And in a Competitive market in the long run The Firm's Profit Is Equal In both The Market. In The Long run Both Monopolistic Competition and Perfect Competition More New Firms Are Enter In The Market So Competition Increase In The Long run So For The Both Competition In The Long Run Demand Curve Shift To The Left So In The Both Competitive Market In The Long Run They Only Earn Normal Profit.