Answer to Question #46627 in Microeconomics for irfan

Question

Can a monopolistic behave like a perfectly competitive firm?

Answer 1

It is possible in a situation of a monopolistic competition, especially in the long run. There are many buyers and sellers and market is still very competitive. The only except is that numbers of buyers and sellers are not infinite. The demand for their product is elastic, despite that fact that do have little power for the price making. And barriers to entry or exit are not so insurmountable.