The monopolistically competitive firm represented in the graph is in: $ $11.40 $10.20 $7.50 0 520 630 MC ATC Firm's Demand MR Quantity a long-run equilibrium since it is earning zero profit. b short-run equilibrium since it is earning zero profit. C short-run equilibrium, but not long-run equilibrium since it is earning positive economic profit. Your answer d long-run equilibrium, but not short-run equilibrium since it is earning positive economic profit.
The monopolistically competitive firm represented in the graph is in: $ $11.40 $10.20 $7.50 0 520 630 MC ATC Firm's Demand MR Quantity a long-run equilibrium since it is earning zero profit. b short-run equilibrium since it is earning zero profit. C short-run equilibrium, but not long-run equilibrium since it is earning positive economic profit. Your answer d long-run equilibrium, but not short-run equilibrium since it is earning positive economic profit.
Chapter14: Monopolistic Competition And Product Differentiation
Section: Chapter Questions
Problem 1P
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