Question

What is the long run equilibrium for a perfectly competitive firm, monpolistically competitive firm, oligopoly and monopoly? Use notation.

Answer 1

Following the diagram :

the perferctly competitive market: over the long run all firms get only the normal profit. In other words, zero profit is available over the long run.

Monopoly: the monopoly firm can earn the positive porfit in the long run.

Monopolistically competitive market: in the monopolistically competitive market , all firms get only the zero economic profit or this is breakeven profit condition.

In the oligopoly market, there might be zero economic profit or positive profit , there are the different models or oligopoly that exhibit the different profit level over the long run.