Question

What are the differences between the​ long-run equilibrium of a perfectly competitive firm and the​ long-run equilibrium of a monopolistically competitive​ firm?

Unlike perfectly competitive firms, in the long run monopolistically competitive firms ______.

Answer 1

face excess capacity or unused capacity.

Step-by-step explanation:

Unlike perfectly competitive firms, in the long run monopolistically competitive firms face excess capacity or unused capacity.

Answer 2

Unlike perfectly competitive firms, in the long run monopolistically competitive firms face excess capacity or unused capacity. They produced at a higher cost which implies wastage of resources or under-utilization of resources.