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.

License

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ACC Principles of Microeconomics by Lumen Learning is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted.