Marketing Question

Overview

• How do monopolistically competitive markets differ from perfectly competitive markets? If monopolistically competitive firms are making economic profits in the short run, what happens in the long run?
• A profit-maximizing price searcher will expand output as long as marginal revenue either exceeds or is equal to marginal cost, lowering its price or raising its price until the midpoint of their demand curve and highest total revenues are achieved. Why are oligopolies able to earn both short-run economic profits and long-run economic profits, while price taking firms like perfect competitors can only earn short-run economic profits?
• Assignment should be in three to four pages, double-spaced, 12 point and please provide citations in the body of the essay and References at the end. (Note that the title and reference page does not count towards page count requirement). Due Sunday
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• Textbook
• Managerial Economics & Business Strategy, 10th EditionBy Michael Baye and Jeff PrinceISBN 13: 9781260940541Publisher: ‎McGraw Hill