Economic Definition of short-run supply curve monopolistic competition. Defined.
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Term short-run supply curve monopolistic competition Definition: Market control means that monopolistic competition does not necessarily have a supply relation between the quantity of output produced and the price. In contrast, the short-run supply curve of a perfectly competitive is that portion of its marginal cost curve that lies above the minimum of the average variable cost curve. Because monopolistic competition does not set price equal to marginal revenue, it does NOT equate marginal cost and price. As such, a monopolistically competitive firm does not necessarily supply larger quantities at higher prices or smaller quantities at lower prices.