Using the Long Run Average Cost curve for a Monopolistic Competitive firm below answer questions 2a – 2d. a. As presented in the long-run profit-maximizing output for the monopolistic competitive firm is: b. To maximize long-run profits, the monopolistically competitive firm shown in this graph will charge a price per unit of: c. As represented in this graph, the maximum long-run economic profit earned by this monopolistic competitive firm is:
2. Using the Long Run Average Cost curve for a
a. As presented in the long-run profit-maximizing output for the monopolistic competitive firm is:
b. To maximize long-run profits, the monopolistically competitive firm shown in this graph will charge a price per unit of:
c. As represented in this graph, the maximum long-run economic profit earned by this monopolistic competitive firm is:
Given,
Monopolistic competitive market are those market where there are many sellers selling differentiated products. There is no barrier to exit or entry in this market. Advertisement is key feature if this market.
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