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Unformatted text preview: interdependence. Often ability to influence price Few number of sellers None or some product differentiation Substantial barrier to enter market Can earn long run profit Does not produce at minimum ATC Monopolistic Competition : A market structure in which each firm is relatively small, but each has a monopoly on its particular version of the product in question. Competition in such a framework includes advertising, easy entry product differentiation, limited price control, and other forms of non-price competition. Some ability to influence price Many sellers Some product differentiation Few barriers to enter market Cannot earn long-run economic profit Does not produce at minimum ATC Labor market graph will curve backwards once price reaches certain level MB = Marginal benefit = Marginal rev. product= MRP = change in Total rev/change total number of laborers Derived Demand-how much firm sells in market, more company will hire...
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