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The analysis of monopolistic competition, characterized by firms selling similar but not identical products, involves creating short-run and long-run equilibrium graphs. In the short run,

The analysis of monopolistic competition, characterized by firms selling similar but not identical products, involves creating short-run and long-run equilibrium graphs. In the short run, where MC intersects the demand curve, a profit-maximizing point is marked on the graph. In the long run, where ATC is tangent to the demand curve, another equilibrium point is marked. These visualizations aid in assessing the efficiency of monopolistic competition

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