Monopolistic Competition with a Homogeneous Product

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In monopolistic competition, firms produce differentiated products. Moreover, in this Demonstration based on a numerical example found in [1], each one of the monopolistically competitive firms produces a homogeneous product with free entry and exit. The demand function is given by
and the cost function is
(where
is fixed costs).
Contributed by: Christos Papahristodoulou (January 2014)
(Mälardalen University, Sweden)
Open content licensed under CC BY-NC-SA
Snapshots
Details
References
[1] D. Carlton and J. Perloff, Modern Industrial Organization, 4th ed., Boston: Pearson/Addison–Wesley, 2005.
[2] Wikipedia. "Monopolistic Competition." (Jan 13, 2014) en.wikipedia.org/wiki/Monopolistic_competition.
Permanent Citation
"Monopolistic Competition with a Homogeneous Product"
http://demonstrations.wolfram.com/MonopolisticCompetitionWithAHomogeneousProduct/
Wolfram Demonstrations Project
Published: January 17 2014