Please Dram a proper Diagram of this question. I have not seen diagram in my previous question.Make a clear picture of the diagramNote:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure. Draw a precise diagram of long-run equilibrium in EdwardChamberlin's model of monopolistic competition. Thediagram should illustrate the Excess Capacity Theorem,wherein a firm attains equilibrium at a point of tangencybetween the demand curve (AR curve) and the long-run ACcurve, but with positive excess capacity. What is therelationship between own price-elasticity of demand for theclose substitutes in this model and the extent of excesscapacity ?

The monopolistic competition sells differentiated products and has barriers to entry. The products…

Answered: Draw a precise diagram of long-run…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please Dram a proper Diagram of this question. I have not seen diagram in my previous question.

Make a clear picture of the diagram

Note:-

Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.

Draw a precise diagram of long-run equilibrium in Edward
Chamberlin's model of monopolistic competition. The
diagram should illustrate the Excess Capacity Theorem,
wherein a firm attains equilibrium at a point of tangency
between the demand curve (AR curve) and the long-run AC
curve, but with positive excess capacity. What is the
relationship between own price-elasticity of demand for the
close substitutes in this model and the extent of excess
capacity ?

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