Consider the following statement: "A monopolistically competitive market in which there are no entry barriers will have the identical long-run equilibrium as if the market were perfectly competitive." Is this statement correct?
◦ Yes, in the absence of entry barriers, firms in the monopolistically competitive market will expand until they are producing at the minimum of their LRAC curves, just as in perfect competition.
◦ No, because firms in the monopolistically competitive market do not produce at an output level where MC = MR, as in perfect competition, which leads to a different price and output in long-run equilibrium.
◦ Yes, in the absence of entry barriers, new firms enter the industry until industry price and output are identical to perfect competition.
◦ No, firms in the monopolistically competitive market earn economic profits in the long run because they are facing a downward-sloping demand curve, whereas in perfect competition they earn zero profits.
◦ No, because firms in the monopolistically competitive market will not reach their minimum efficient scale as they would in perfect competition - the result is higher prices and lower output.
Example of Index entry with Main Term and indented subterms.
Example of Reconciling a Bank Statement Cont.
The four routes of entry into the human body for hazardous materials.
Competitive firms and maximization
Time-of-entry mapping
Time-of-entry mapping