Welcome to Westonci.ca, where curiosity meets expertise. Ask any question and receive fast, accurate answers from our knowledgeable community. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

What makes monopolistic firms stay in production against competition?


Sagot :

Answer:

Monopolistically competitive firms maximize their profit when they produce at a level where its marginal costs equals its marginal revenues. Because the individual firm's demand curve is downward sloping, reflecting market power, the price these firms will charge will exceed their marginal costs.

Explanation:

(hope this helps)