Economic Definition of long-run production analysis monopolistic competition. Defined.
Offline Version: PDF
Term long-run production analysis monopolistic competition Definition: In the long run, a monopolistically competitive firm adjusts plant size, or the quantity of capital, to maximize long-run profit. In addition, the entry and exit of firms into and out of a monopolistically competitive market eliminates economic profit and guarantees that each monopolistically competitive firm earns nothing more or less than a normal profit.