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Consider the graph below. Suppose qMC = 400, pMC = $10, and ATC = $12 at 400 units. Is the profit- maximizing firm in monopolistic

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Consider the graph below. Suppose qMC = 400, pMC = $10, and ATC = $12 at 400 units. Is the profit- maximizing firm in monopolistic competition making a profit or loss, and by how much? Price MC ATC ATC Firm Demand = AR MR = MC aMC Quantity Output MR Firm -$4.800 loss $4.000 profit $800 profit O -$800 loss

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