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  3. question 4 12 pts how does a monopolistically competitive firm...

Question: question 4 12 pts how does a monopolistically competitive firm...

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Question 4 1/2 pts How does a monopolistically competitive firm similar to a monopoly? Makes economic profits in the long run. Has one seller. Can make profits or losses in the short run. Faces high barriers to entry. Produces where P > MR = MC. Can restrict output to increase price (at least in the short run). Faces a downward-sloping demand curve.
Question 5 0.67/2 pts How does a monopolistically competitive firm similar to a perfectly competitive firm? Has many sellers. Can make profits or losses in the short run. Produces where P-MR-MC. Faces a perfectly elastic demand curve Produces output that is identical. Makes zero economic profit in the long run.
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