Question

explain the short run and long run equilibrium under monopolistic competition market and show excess capacity of monoplastic competition market.​

Answer 1

Explanation:

Long Run Equilibrium of Monopolistic Competition: In the long run, a firm in a monopolistic competitive market will product the amount of goods where the long run marginal cost (LRMC) curve intersects marginal revenue (MR). The price will be set where the quantity produced falls on the average revenue (AR) curve.