long run equilibrium under monopolistic competition

Price & Output determination : Monopolistic Competition

By |2016-06-13T18:25:55+00:00June 13th, 2016|Categories: Economics assignment help|Tags: , , , , , |

# INTRODUCTION : As we know, under Monopolistic competition MR is not equal to AR as in case of perfect competition. So, if a firm wants to sell more units of output, it will have to lower its price per unit. That is the reason why under monopolistic competition AR and MR curves are sloping downward [...]