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A monopolistically competitive firm is operating in the short run at the optimal level of output and is earning positive economic profits. Describe...

1.A monopolistically competitive firm is operating in the short run at the optimal level of output and is earning positive economic profits. Describe how this industry will adjust in the long run.

 

 

2.A monopolistically competitive firm is operating in the short run at the optimal level of output and earns negative economic profits. Describe how this industry will adjust in the long run.

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