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a)[7 marks] Draw a diagram to show the long-run equilibrium of a firm in Monopolistically Competitive market. (Clearly label MR, AR, ATC and MC). Show
a)[7 marks] Draw a diagram to show the long-run equilibrium of a firm in Monopolistically Competitive market. (Clearly label MR, AR, ATC and MC). Show the profit maximizing level of Q and P. Is P less than or greater than ATC? Is P greater or less than MC? How much profit firm is earning in the long run?
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