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In the long run, if the demand curve of a monopolistically competitive firm is tangent to its average total cost curve then
A. the firm would break even.
B. the firm would shut down temporarily.
C. the firm would earn enough revenue to cover its variable costs, but not its fixed costs.
D. the firm would earn an economic profit.
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suppose the quantity of good x demanded by individual 1 is given by x1 10 ?? 2px 001i1 04py and the quantity of x
Explore how firms in monopolistic competition differentiate their products or services to generate a market niche and gain more control over their pricing. To what extent can product differentiation create barriers to entry?
Advanced analysis) Answer the next question(s) on the basis of the following consumption schedule: C = 20 + .9Y, where C is consumption and Y is disposable income. REfer to this data. At an $800 level of disposable income, the level of savings is:
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You are the manager of a paper mill and have been subpoenaed to appear before a joint session of the Senate Consumer Affairs and the Senate Environmental subcommittees. What raised in the joint session of the subcommittees.
Congress is proposing a bill that will roll back gasoline prices to four dollars a gallon. Analyze the consequences of such a bill and whether or not you would personally favor it. Consider all the costs involved in your analysis.
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