148k views
3 votes
two firms, firm a and firm b, have identical cost curves, yet firm a operates in perfect competition and firm b operates in monopolistic competition. in the long run, what can we say about the price and output that each firm charges?

User Jpseng
by
6.1k points

1 Answer

2 votes
The monopolistic firm will have more benefits since they are a monopoly they can raise the prices without having big repercusión since they don’t have as much competition
User Stayingcool
by
6.0k points