Will there be economic profits in the long run in a monopoly

Reference no: EM13183317

a) Will there be economic profits in the long run in a monopolistic competitive market? Explain your answer.

b) " Firms in monopolistic competition are not producing at minimum average cost. They are said to have excess capacity." Explain the statement. Why the firms under monopolistic competition are not producing at minimum average cost? Explain and support your answer using one example.

Reference no: EM13183317

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