Completed quickly and followed instructions given. Grammar, spelling, etc. was all good as well. Thank you so much! Will hire in the future.
Monopolistic competition creates a DWL because firms have market power.
Like a monopoly, firms in monopolistic competition have market power. That is, they are price searchers or price makers. Because they have a differentiated product, they are able to set price above marginal cost. By definition, this is deadweight loss. Like a monopoly, firms in monopolistic competition produce a quantity that is too low and at a price that is too high (compared to perfect competition).
Two qualifications are needed. First, the concept of DWL is a bit misleading, particularly in the context of market structures. Comparing monopolistic competition (or monopoly) to perfect competition is meaningless. Second, economists usually don’t worry much about the DWL of monopolistic competition. We are more interested in the excess capacity generated by monopolistically competitive firms in long run equilibrium.
Show more
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more