Draw a Graph!!! Consider the monopolistic competition model (with the CC and PP curves). Suppose: a. S = 100 b. b = 1 c. c = 2 d. F = 10 Solve for the equilibrium number of firms n and the price, P. Now suppose c falls to 1. Solve for the new number of firms, n, and the new price, P. Tell a story for what happens.
Draw a Graph!!! Consider the monopolistic competition model (with the CC and PP curves). Suppose: a. S = 100 b. b = 1 c. c = 2 d. F = 10 Solve for the equilibrium number of firms n and the price, P. Now suppose c falls to 1. Solve for the new number of firms, n, and the new price, P. Tell a story for what happens.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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!!! Draw a Graph!!!
Consider the monopolistic competition model (with the CC and PP
curves). Suppose:
a. S = 100
b. b = 1
c. c = 2
d. F = 10
Solve for the equilibrium number of firms n and theprice , P.
Now suppose c falls to 1. Solve for the new number of firms, n, and the new price, P.
Tell a story for what happens.
curves). Suppose:
a. S = 100
b. b = 1
c. c = 2
d. F = 10
Solve for the equilibrium number of firms n and the
Now suppose c falls to 1. Solve for the new number of firms, n, and the new price, P.
Tell a story for what happens.
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