Why is it that firms can earn profits in the long run

Reference no: EM13245497

1.Why is it that firms can earn profits in the long run in monopoly and oligopoly but not in monopolistic competition and perfect competition?

2. As an industry moves from being a monopoly to a monopolistically competitive one (due to the entry of new competitors as the monopoly's patents expire, for example), what happens to the elasticity of the demand curve facing the firm? Why?

Reference no: EM13245497

Questions Cloud

What is the frequency of the sound produced : A person is drinking water from a plastic bottle. When the water level is 6cm from the top of the bottle, the person blows across the top producing a sound

Describe relationship between unemployment and real wages : Describe the relationship between unemployment and real and nominal wages. Which is more important and why What effects would either an increase or decrease in unemployment have on wages

What is the present value of the bond show your work : You buy a government bond that pays interset twice a year. The interset payment is $300 each six months. The bond matures in six years. The face value of the bond is $10,000. The annual market interset rate is 6 percent.

What is the centripetal acceleration of a helicopter : What is the centripetal acceleration of a helicopter flying in a horizontal circle of a diameter 510 m at a speed of 120 m/s

Why is it that firms can earn profits in the long run : As an industry moves from being a monopoly to a monopolistically competitive one (due to the entry of new competitors as the monopoly's patents expire, for example), what happens to the elasticity of the demand curve facing the firm

What effect would each of the following have on aggregate : What effect would each of the following have on aggregate demand or aggregate supply

What have been some of consequences of government price : explain using a numerical example, how the lawof diminishing returns operates. how does the law of diminishing returns explain the behavior of total cost, total variable cost and marginal cost as output increase

Explain important to have a set of standard conditions : What are the standard conditions of temperature and pressure, and why is it important to have a set of standard conditions

What is the electric field strength between the plates : A doubly charged ion is accelerated to an energy of 35.0 keV by the electric field between two parallel conducting plates separated by 2.20 cm

User Account

All Pages