Price‐searching behavior. The monopolistically competitive firm will be a price‐searcher rather than a price‐taker because it faces a downward‐sloping demand curve for its product. The firm searches for the price that it will charge in the same way that a monopolist does, by comparing marginal revenue with marginal cost at each possible price along the market demand curve.
Economics
- Introduction
- Demand, Supply, and Elasticity
- GDP, Inflation, and Unemployment
- Aggregate Demand and Aggregate Supply
- Classical and Keynesian Theories: Output, Employment
- Money and Banking
- Fiscal and Monetary Policy
- Theory of the Consumer
- Theory of the Firm
- Perfect Competition
- Monopoly
- Monopolistic Competition and Oligopoly
- Labor Market
- Capital Market
Demand in a Monopolistic Market
- Economic Policy
- Economic Analysis
- Economics Defined
- Macroeconomics
- Microeconomics
- Equilibrium Analysis
- Elasticity
- Demand
- Supply
- GDP
- Nominal GDP, Real GDP, and Price Level
- Unemployment Rate
- Aggregate Demand (AD) Curve
- Aggregate Supply (AS) Curve
- Combining AD and AS Supply Curves
- The Classical Theory
- The Keynesian Theory
- Supply of Money
- Definition of Money
- Functions of Money
- The Demand for Money
- Fiscal Policy
- Monetary Policy
- Consumer Equilibrium
- Consumer Equilibrium Changes in Prices
- Individual Demand Market Demand
- Consumer Surplus
- Utility and Preferences
- Production Costs and Firm Profits
- Long‐Run Costs
- Production of Goods
- Long-Run Supply
- Conditions for Perfect Competition
- Demand in a Perfectly Competitive Market
- Short-Run Supply
- Monopoly in the Long-Run
- Costs of Monopoly
- Conditions for Monopoly
- Demand in a Monopolistic Market
- Profit Maximization
- Monopolistic Competition in the Long-run
- Conditions for an Oligopolistic Market
- Kinked-Demand Theory of Oligopoly
- Cartel Theory of Oligopoly
- Conditions for Monopoly
- Demand in a Monopolistic Market
- Monopolists: Profit Maximization
- Equilibrium in a Perfectly Competitive Market
- Labor Demand and Supply in a Monopsony
- Equilibrium in a Monopsony Market
- Labor Demand and Supply in a Perfectly Competitive Market
- Capital, Loanable Funds, Interest Rate
- Present Value and Investment Decisions
- Measures of Capital
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