Monopolistic Competition in the Long-Run: Econ Concepts in 60 Seconds

Mr. Clinton from ACDC Econ explains key economic concepts in 60 seconds, focusing on monopolistic competition. He demonstrates how to draw a monopolistically competitive firm in long-run equilibrium and compares it to perfect competition. The video covers demand curves, marginal revenue, marginal cost, and average total cost, emphasizing the concept of the sweet spot in graphs. The tutorial concludes with the understanding that in the long run, firms in monopolistic competition make no economic profit.

What happens to economic profit in the long run for a monopolistically competitive firm?

Describe the relationship between average total cost (ATC) and price in a monopolistically competitive market.