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(b) GoGo Pizza is producing at the profit-maximizing level of output in a

monopolistically competitive market. 

 

i. Show GoGo Pizza's profit-maximizing level of output, selling price, and a positive profit in a diagram. Briefly explain. (8 marks)

ii. Does GoGo Pizza have an incentive to produce at the level of output that maximizes the social welfare? Explain with the diagram in part (i). (5 marks) 

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