204 Outcome: Short Run and Long Run Equilibrium
What you’ll learn to do: explain the difference between short run and long run equilibrium in a monopolistically competitive industry
When others notice a monopolistically competitive firm making profits, they will want to enter the market. These new firms entering the market will drive the economic profits towards zero in the long-run.
LEARNING ACTIVITIES
The learning activities for this section include the following:
- Reading: Monopolistic Competitors and Entry
- Self Check: Short Run and Long Run Equilibrium
Take time to review and reflect on each of these activities in order to improve your performance on the assessment for this section.