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Use the following diagram of a monopolistically competitive firm to answer this question. Price, Cost, MC/ MR $8 - - $7.75 ATC $7.50 $7.251- $7

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Use the following diagram of a monopolistically competitive firm to answer this question. Price, Cost, MC/ MR $8 - - $7.75 ATC $7.50 $7.251- $7 $4+ 5.5 6 MR 7 Quantity A) What are the optimal price and quantity for this firm? B) Is the firm in a long-run or a short-run solution? Clearly explain your answer. C) What is the firm's profit/loss? Explain your calculations

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