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InterviewSolution
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In short run, a firm in monopolistic competition |
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Answer» May earn normal profit, super normal profit or incur losses In short RUN, a firm in monopolistic competition may earn normal profit, super normal profit or incur losses. In the short run, a MONOPOLISTICALLY COMPETITIVE firm maximizes profit or minimizes losses by producing that quantity that corresponds to when marginal revenue = marginal cost. If average TOTAL cost is below the market price, then the firm will earn an economic profit. |
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