The monopolistic competitors demand curve will in the long runn

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    remain highly inelastic, with price greater than average total cost, since the firms products are differentiated and so the firm is protected from competition..
     shift up or down in response to exit from or entry into the market until it is tangent to the firms ATC curve, so that price is equal to average total cost..
     become highly elastic, with price less than average total cost, since competition is free to enter the market.
     remain fixed so that price exceeds ATC unless and until tastes or trends change in the market to shift demand.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

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shift up or down in response to exit from or entry into the market until it is tangent to the firms ATC curve, so that price is equal to average total cost..
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)



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