2. Monopolistic competition: For a firm facing the following cost functions and demand curve: 25 T...

 

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2. Monopolistic competition: For a firm facing the following cost functions and demand curve: 25 T T $ 0 5 10 10 15 20 20 MR MC AC 10 20 30 40 Quantity Indicate their profit maximizing quantity on the graph Shade in the area representing their profit Will this firm produce in the short run? Will they remain in the market in the long run? In the long run, will firms enter or exit the market? how will this affect demand and the current firm's profit? 2. Monopolistic competition: For a firm facing the following cost functions and demand curve: 25 T T $ 0 5 10 10 15 20 20 MR MC AC 10 20 30 40 Quantity Indicate their profit maximizing quantity on the graph Shade in the area representing their profit Will this firm produce in the short run? Will they remain in the market in the long run? In the long run, will firms enter or exit the market? how will this affect demand and the current firm's profit?