If monopolistically competitive firms have some control over their prices, why don't they set price above average

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If monopolistically competitive firms have some control over their prices, why don't they set price above average total cost so they will realize an economic profit in the long run?

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Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

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Question Posted: Sep 21, 2024 05:13 AM

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If monopolistically competitive firms have some control over their prices, why don't they set price above average total cost so they will realize an economic profit in the long run?
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If monopolistically competitive firms have some control over their prices, why don't they set price above average

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Entry is relatively easy in monopolistic competition If a ...View the full answer

Microeconomics An Intuitive Approach with Calculus

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