If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)

Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Quick macro question

lopppy · 2011-05-04 19:53:50

Hey, have an international economics exam tomorrow, currently studying monopolistic competition. Pasting from lecture slides.. "A firm in a monopolistically competitive industry is expected To sell more as total sales in the industry increase and as prices charged by rivals increase. To sell less as the number of firms in…

Options

04-05-2011 8:53pm

#1
lopppy

Registered Users Posts: 66 ✭✭

Join Date: August 2006

Posts: 47
Hey, have an international economics exam tomorrow, currently studying monopolistic competition. Pasting from lecture slides..

"A firm in a monopolistically competitive industry is expected

To sell more as total sales in the industry increase and as prices charged by rivals increase.
To sell less as the number of firms in the industry decreases and as its price increases"

Why does it sell less as the number of firms decrease? Restricting output to increase price?

Tagged:

macro economics

0

Comments

Options
#2 18-05-2011 6:52am
meryem

Registered Users Posts: 271 ✭✭

Join Date: March 2011

Posts: 264

To gain more profits from lesser investment and resources. A perfect monopolistic approach.

0