Share This Article:

Economic Definition of profit maximization monopolistic competition. Defined.

Offline Version: PDF

Term profit maximization monopolistic competition Definition: A monopolistically competitive is presumed to produce the quantity of output that maximizes economic profit--the difference between total revenue and total cost. This production decision can be analyzed directly with economic profit, by identifying the greatest difference between total revenue and total cost, or by the equality between marginal revenue and marginal cost.

 

« profit analysis monopolistic competition | revenue division monopolistic competition »

Permalink: https://glossary.econguru.com/economic-term/monopolistic+competition,+profit+maximization

Alphabetical Reference to Over 2,000 Economic Terms