Two Characteristics of Long- Run Equilibrium (AS in a competitive market, price equals average total cost o Free entry and exit drive economic profit to zero H arc Inc items and derived items copyright o 2001 by Harcourt, Inc
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Two Characteristics of LongRun Equilibrium ·As in a competitive market, price equals average total cost. uFree entry and exit drive economic profit to zero
Monopolistic versus Perfect Competition There are two noteworthy differences between monopolistic and perfect competition--excess capacity and markup. H arc Inc items and derived items copyright o 2001 by Harcourt, Inc
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Monopolistic versus Perfect Competition There are two noteworthy differences between monopolistic and perfect competition—excess capacity and markup