RE: 16-04-2024 - Economy - Monopolistic competition [EN]-[IT]
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When there is monopoly, there will be high cost irrespective of the numerous companies involved
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You are viewing a single comment's thread:
When there is monopoly, there will be high cost irrespective of the numerous companies involved
Thanks for stopping by. If we try to study the monopolistic competition market (which has some differences with the monopolistic market), we can say that over time the price will equal the average total cost. It will probably be lower at the beginning and there could be substantial profits, but then P = CMT (price equal to average total cost). If we draw a graph, the price and the average cost will be found where the total average cost curve is tangent to the demand line
