Economic Definition of revenue division monopolistic competition. Defined.
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Term revenue division monopolistic competition Definition: The marginal approach to analyzing a monopolistically competitive firm's short-run profit maximizing production decision can be used to identify the division of total revenue among variable cost, fixed cost, and economic profit. The U-shaped cost curves used in this analysis provide all of the information needed on the cost side of the firm's decision. The demand curve facing the firm (which is also the firm's average revenue) together with the marginal revenue curve provides all of the information needed on the revenue side.
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