A monopolistic competitive firm has demand and cost curves given by: QD = 1000 - 2P TC

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A monopolistic competitive firm has demand and cost curves given by:
QD = 1000 - 2P
TC = 5,000 + 50Q
a. At what price should this firm sell its product?
b. What do you think would happen as the firm moves toward the long run? Explain.

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Managerial Economics

ISBN: 978-0133020267

7th edition

Authors: Paul Keat, Philip K Young, Steve Erfle

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Question Posted: Nov 24, 2017 10:37 AM

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A monopolistic competitive firm has demand and cost curves given by: QD = 1000 - 2P TC

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a Equate MR with MC MC 50 Q 10002P P 5005Q TR500Q5Q 2 MR 500Q So 500Q50 ...View the full answer

Managerial Economics

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