3.10 Monopolistic Competition

3.10 Monopolistic Competition - 1 $30 2 $3 per unit 3 In...

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1. $30 2. $3 per unit 3. In the short run, Enviromax would make excess profits because of short term demand and no competition. In the long run, their profits will decrease because they are a monopolistically competitive firm. Because there are little to no barriers needed to enter the paper-recycling, companies realize that pretty much anyone could enter this market. These companies see Enviromax’s success with short-term profits and they now want to enter the market. What this
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