. Draw a diagram showing a monopolistically competitive firm earning positive economic profits. What would need...

. Draw a diagram showing a monopolistically competitive firm earning positive economic profits. What would need to happen to bring this market back to long run equilibrium? Illustrate this transition to long run equilibrium from the perspective of the individual firm in your diagram.

Use a graph to show the price and quantity a monopolist would choose facing a downward sloping demand curve. Show the monopolist’s total profits. Using the same graph, show what would happen if the monopolist experienced a decrease in its fixed costs. Show the new equilibrium price, quantity, and total profit

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Rahul Sunny answered 2 years ago

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