Draw the relevant curves to show a monopolistic competitor earning an economic profit in the short run.

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Draw the relevant curves to show a monopolistic competitor earning an economic profit in the short run. Graphically show what this firm can expect to happen to this economic profit in the long run. (Assume its ATC and MC curves don’t change in the long run)

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Macroeconomics Principles and Applications

ISBN: 978-1133265238

5th edition

Authors: Robert e. hall, marc Lieberman

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