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Economics, Microeconomics
Year 4
Monopolistic Competitor (In Equilibrium - what will be output choice? What will be average fixed cost?)
1. Suppose a monopolistic competitor in long-run equilibrium has a constant marginal cost of $6 and faces the demand curve given in the following table (see attachment).
a) What output will the firm choose?
b) What will be the monopolistic competitor's average fixed cost at the output it chooses?
problem 6 week 3 microeconomics.doc View File
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