Economic Definition of monopolistic competition profit maximization. Defined.
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Term monopolistic competition profit maximization Definition: The marginal revenue and marginal cost approach to analyzing a monopolistically competitive firm's short-run production decision can be used to identify economic profit. The U-shaped cost curves used in this analysis provides 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 curve) and the firm's marginal revenue curve provides the information needed on the revenue side.
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