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14. Consider the following cost curves for a book publisher in Long run equilibrium: Price, MC AC Cost P1 P3 - - P2 P. MR

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14. Consider the following cost curves for a book publisher in Long run equilibrium: Price, MC AC Cost P1 P3 - - P2 P. MR D Q1 Q3 Q2 Quantity a. What will be the firm's profit maximizing quantity produced? b. What will be the equilibrium price? c. Is the firm earning an economic profit? Explain. d. How much excess capacity does this firm have? e. What benefit does monopolistic competition have for consumers compared to perfect completion

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