About this document
Short-Run Equilibrium in Imperfect Competition by marhelun is a document available to read on EtoBox.
This document discusses a method for determining long-run equilibrium output of a firm operating under imperfect competition. It proposes that if a firm produces product X under imperfect competition, and also produces a generic version Y under perfect competition, the equilibrium output of X will be where average costs of Y are minimized. As long as both products are viable, the equilibrium outputs of X and Y will be the same at the firm level. While this equilibrium is not socially optimal, it does have a
- Author
- marhelun
- Language
- EN