Post by: markburs on Oct 12, 2022
The diagram below shows demand and cost curves for a monopolistically competitive firm.
FIGURE 11-4
Refer to Figure 11-4. This monopolistically competitive firm is said to be inefficient because in long-run equilibrium,
◦ price is greater than MC at Q1.
◦ MC is greater than price.
◦ MC is greater than LRAC.
◦ LRAC at Q1 is not at its minimum.
◦ price is greater than LRAC at Q1.
Post by: Sophia0717 on Oct 12, 2022