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Suppose a firm in a monopolistic competitive market produces a profit-maximizing quantity of 25 in the short run. At this quantity its Marginal Revenue and
Suppose a firm in a monopolistic competitive market produces a profit-maximizing quantity of 25 in the short run. At this quantity its Marginal Revenue and Marginal Cost are both $20, its Average Total cost is $50 at that quantity, its Average Variable cost is $30, and the price it charges is $55. In the long run, firms will [ Select ]all remain, enter, exist and the price each firm can charge for their product [ Select ] decrease, stay the same, increase
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