Question
Long run equilibrium of Monopoly and Perfect competition
Answer :
Word Count : 122
| Feature | Perfect Competition (Long-Run Equilibrium) | Monopoly (Long-Run Equilibrium) |
|---|---|---|
| Number of Firms | Many firms exist; entry and exit possible. | Single firm dominates; no close substitutes; entry blocked. |
| Profit | Firms earn normal profit (zero economic profit) in the long run. | Monopolist may earn positive economic profit in the long run. |
| Output Level | Output where P = MC (allocatively efficient). | Output where MR _______ _________ ____ ________ _____ ________ _____ ________ _________ _________ __________. ____ ______ _________ ______ _____. ____ ___ ________ _____ ________ _____ _______. _______ _________ _______ ___ _______ _______ __________ ____ _____ ________ ____ __________. __________ _______ ______ ____ ___ _______ _____ __________ __________ ____. __________ _______ __________ ____ ______ _______ ____ _____ ___ _____. ______ ____ __________ _______ _____ __________ ___ ___ ___ ___ _________. ____ ______ _____ ____ _______ ______ ________. IGNOU ACADEMY Your IGNOU journey, made easier.
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