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Unformatted text preview: Q units of output, it can charge a price of $ P per unit of output. The firm is shown earning positive economic profits equal to the area of the rectangular box, abcd. Negative economic profits (losses) are also possible. The monopolistically competitive firm's behavior appears to be no different from the behavior of a monopolist. In fact, in the short-run, there is no difference between the behavior of a monopolistically competitive firm and a monopolist. However, in the long-run, an important difference does emerge....
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This note was uploaded on 11/19/2011 for the course ECO 1310 taught by Professor Staff during the Fall '10 term at Texas State.
- Fall '10