Economic Definition of long-run equilibrium conditions monopolistic competition. Defined.
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Term long-run equilibrium conditions monopolistic competition Definition: The long-run equilibrium of monopolistically competitive industry generates six specific equilibrium conditions: (1) economic inefficiency (P > MC), (2) profit maximization (MR = MC), (3) market control (P = AR > MR), (4) breakeven output (P = AR = ATC), (5) excess capacity (ATC > MC), and (6) economies of scale (LRAC > LRMC).
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