Fill in the blanks
Introduction:
The firm is known to have a downward sloping demand curve. It is more elastic than an AR curve of a monopolist while less elastic than that for a
Marginal Revenue- It is the additional revenue earned by a seller by selling one more unit of output in the market.
Average Revenue- It is the Total Revenue (TR) divided by the number of units sold or the revenue per unit. Alternatively, it is called the price.
Average Fixed Cost (AFC)- Fixed Cost is the one-time expenditure incurred by a producer which is a liability irrespective of the level of output like rent for the building. Per unit fixed cost is the average fixed cost.
The defining features of the monopolistically competitive are:
1. A large number of buyers and sellers but less than that in a perfectly competitive market.
2. Free entry and exit of firms into the industry.
3. The firms sell differentiated products and thus resort to sales and promotion expenses to attract consumers to buy their products.
4. Firms have an
5. The firms are productively and
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