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2. A monopolistic competitor operates at its short run profit-maximizing point, with a weekly output of 100 000 units and a price of $5.
2. A monopolistic competitor operates at its short run profit-maximizing point, with a weekly output of 100 000 units and a price of $5. a. If the business's average cost is initially $6, what happens in the long run if it stays in operation? b. If the business's average cost is initially $4 instead, then how will the long-run trends for this business differ?
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a Initial Average Cost 6 Price 5 Output 100000 units In the short run the firm is operating at a los...
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Management and Cost Accounting
Authors: Colin Drury
10th edition
1473748873, 9781473748910 , 1473748917, 978-1473748873
