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"Firms in the monopolistically competitive movie industry face excess capacity. This means that there are ________ movies than the output at which ________ cost is minimized."

User Rytis I
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Answer:

Fewer; average total

Step-by-step explanation:

"Firms in the monopolistically competitive movie industry face excess capacity. This means that there are Fewer movies than the output at which average total cost is minimized."

Monopolistically competitive market: Monopolistic competition are defined as situation in market, wherein many seller or firm offer similar kind of product in the market, however, products are not close subtitute. There is low barrier to entry in these market. The monopolistic competitive firm choose a level of output, which is below its minimum efficient scale.

User Dpineda
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