e3200_22_10 - d \ \ ) s (\ .h N N N F c\ (\ t >.- too gods...

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>.- (\ c\ F N .h s )t \ d
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T 5. In a monopolistically competitive equilibrium with homogeneous gods the industry produces too little output. lz tlc ', @nlamer vahe .?ad$ hi'ahu thah i{ ush 10 l'r1ilte ";I;Aio rcniE a 1oo t'irilz o4*{- lg pro&uud. ^ ( Tbo' ^o,i1" +i'* ihlhz harkct ' 'toii iii;' Pye {ixel (ost ' vhwt Ac U ,ili; ehiuuht t' have *';;; {iin'- Fc is intttrred ohz-> 6.Increaseinthefilmlevelfixedcostshasnoeffectonthenumberoffirmsinamonopolistically cornPetitive indusaY. .\ Ff =Acl hc'k'.-l- I L r: ';^ rre N..\ i. {irn t9 '=)a+q"t rhQfi*1 -=) 50ne' a, 7 U P l,/L -) Dt o+ hnti I q , ttR. fxi lrt v f , rtmaihina flrrns v I | 'J . lirnt LYit t"lRT , t1 t = t{r1 ? ulfw 'li 4rti , gL P7 ftew qw
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7 . rnmonoporistic competition, short-run profits attract new entry, shifting individual firm's demand curve to the right. (hhrt =)Dr r' N ,+ ht'ms f of tilrA lirn L T g. The larger is the number of firms that produce in a cournot oligopoly, the larger the industry outPut. / N {i ,rtn; -} } akfelihon 1 U rnb+ Paww 4 1abh fr'rm ' Ss M -q s \utnnte ,{- hurno{ o(ivi1,rl'1 7 Pert€ktlg Nmp+h'{ihe ?ufu*
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part III. sotve 3 out of 4 problems.
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This note was uploaded on 09/05/2011 for the course ECON 274 taught by Professor Reinganum during the Spring '09 term at Vanderbilt.

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e3200_22_10 - d \ \ ) s (\ .h N N N F c\ (\ t >.- too gods...

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