Price-output Determination Under Monopolistic Competition

It may be borne in mind that price-output determination is the same thing as an analysis of equilibrium of a firm. Since, under monopolistic competition, different firms produce different varieties of the product, therefore, different prices for them will be determined in the market depending upon their respective demand and cost conditions. Each firm under monopolistic competition seeks to achieve equilibrium or profit maximizing position as regards (I) price and output. (2) product adjustment and (3) adjustment of selling costs. In other words. the producer. under monopolistic competition. must make optimal adjustments nul only ill the price charged and as regards the quantity of output sold hut also in The design of the .md the wa) III which he promotes the  Further. we have lu study mil individual culti bruun of a film but also group equilibrium of the  sh.ill nnw analyse these aspects. We first take up

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