Asked by JAYME

A monopolistically competitve firm produces 100 units of output per period, selling each unit for $75. Marginal revenue and marginal cost of the one-hundredth unit are each $50. Average total cost is $60.

a) Does this situation correspond to short-run equilibrium? Why or why not?

b) Does this situation correspond to long-run equilibrium? Why or why not?

Answers

Answered by Reed
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