Explian about a firm operating monopolistically in a market

Reference no: EM13825402

Problem-

A cosmetic firm operating in a monopolistically competitive market environment spends a lot of money in advertisement and ends up with super-normal profit even in long run. Is it possible? Explain your answer in few words.

Summary

The problem belongs to Economics, mainly to Micro-economics and it converse about a firm operating monopolistically in a competitive market ends up with super-normal profit with advertisement. The reasons behind this have been discussed in the answer.

Word limits- 100

Reference no: EM13825402

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