2. A monopolistic competitor operates at its short run profit-maximizing point, with a weekly output of...

 

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2. A monopolistic competitor operates at its short run profit-maximizing point, with a weekly output of 100 000 units and a price of $5. a. If the business's average cost is initially $6, what happens in the long run if it stays in operation? b. If the business's average cost is initially $4 instead, then how will the long-run trends for this business differ? 2. A monopolistic competitor operates at its short run profit-maximizing point, with a weekly output of 100 000 units and a price of $5. a. If the business's average cost is initially $6, what happens in the long run if it stays in operation? b. If the business's average cost is initially $4 instead, then how will the long-run trends for this business differ?

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a Initial Average Cost 6 Price 5 Output 100000 units In the short run the firm is operating at a los... View the full answer