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1. What are diseconomies of scale and why might they occur? 2. Explain the process that drives the economic profit to zero in the long

1. What are diseconomies of scale and why might they occur?

2. Explain the process that drives the economic profit to zero in the long run for a perfectly competitive firm.

3. A monopolist can set any price it wants. So why does it still produce at a point where MC=MR, just like a perfectly competitive firm?

4. Compare and contrast perfect competition and monopoly (common traits and differences).

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