a) Using the following graph state the price and quantity the firm will be at if the monopolistic competition market is in long run equilibrium. Explain why the firm will be at that price and quantity. Price P1 MC ATC P 2 P3 P4 P5 i MR Q1 Q2 Q3 Quantity b) State the conditions that establish the market structure monopolistic competition, and state how the market adjusts to long run equilibrium and what is different about long run equilibrium for this market structure.
a) Using the following graph state the price and quantity the firm will be at if the monopolistic competition market is in long run equilibrium. Explain why the firm will be at that price and quantity. Price P1 MC ATC P 2 P3 P4 P5 i MR Q1 Q2 Q3 Quantity b) State the conditions that establish the market structure monopolistic competition, and state how the market adjusts to long run equilibrium and what is different about long run equilibrium for this market structure.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![a) Using the following graph state the price and quantity the firm will be at if the monopolistic
competition market is in long run equilibrium. Explain why the firm will be at that price and
quantity.
Price
P1
MC
ATC
B
P 2
P3
P4
P5
MR
D
Q2
Q3
Quantity
b) State the conditions that establish the market structure monopolistic competition, and state
how the market adjusts to long run equilibrium and what is different about long run equilibrium
for this market structure.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F75227c3d-0045-449f-908c-0dff54e4e54b%2Ffc24d780-0916-46d5-93e4-253a0a53a3f6%2Fqqbo3qj_processed.png&w=3840&q=75)
Transcribed Image Text:a) Using the following graph state the price and quantity the firm will be at if the monopolistic
competition market is in long run equilibrium. Explain why the firm will be at that price and
quantity.
Price
P1
MC
ATC
B
P 2
P3
P4
P5
MR
D
Q2
Q3
Quantity
b) State the conditions that establish the market structure monopolistic competition, and state
how the market adjusts to long run equilibrium and what is different about long run equilibrium
for this market structure.
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