Economic Definition of short-run production analysis monopolistic competition. Defined.
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Term short-run production analysis monopolistic competition Definition: A monopolistically competitive firm produces the profit-maximizing quantity of output that equates marginal revenue and marginal cost. This production level can be identified using total revenue and cost, marginal revenue and cost, or profit. Because a monopolistically competitive firm faces a negatively-sloped demand curve, it does not efficiently allocate resources by equating price and marginal cost.