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Homework answers / question archive / Marginal Revenue 1 Figure 2 depicts a situation in a monopolistically competitive market

Marginal Revenue 1 Figure 2 depicts a situation in a monopolistically competitive market

Economics

Marginal Revenue 1 Figure 2 depicts a situation in a monopolistically competitive market. MC 100 95 + 90+ ATC ES 80 75 70 35 50 40 35 30 25 20 15+ 10+ 5 MR Demand 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100105110113120 > Refer to Figure 2. How much profit will the monopolistically competitive firm earn in this situation? ? $400 B No profit, since monopolistically competitive firms never earn economic profit ? $200 profit A D $10 profit

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