Principles of Microeconomics - Chapter 16: Monopolistic Competition

Characteristics of monopolistic competition 1:40 Examples of monopolistic competition 3:11 Each firm faces a downward-sloping residual demand curve 6:34 The marginal revenue curve for a monopolistically competitive firm 9:15 How the monopolistically competitive firm chooses its quantity and price 10:28 - The firm produces the quantity where MR = MC 11:57 - The firm uses the residual demand curve to choose its price 12:14 How to show the profit for a monopolistically competitive firm 13:52 The monopolistically competitive firm has no supply curve 14:24 Profit maximization in the long-run for the monopolistically competitive firm 15:06 - How entry and exit affect the firm's residual demand curve 16:03 - Profit is driven to zero in the long-run by entry 23:34 Long-run equilibrium for a monopolistically competitive firm 32:48 Is profit equal to zero inevitable? 36:19 - Two ways the firm might be able to make profit positive again - Try to increase the residual demand curve it faces by further differentiating its good 39:25 - Shift cost curves down by becoming more efficient 40:11 - Bar Rescue as an example of monopolistic competition 41:35 Comparing perfect competition and monopolistic competition 46:22 - The monopolistically competitive firm produces at excess capacity 49:53 - The markup over marginal cost 51:05 The incentive for monopolistically competitive firms to engage in marketing 54:51