Monopolistic Competition - How to
find the quantity, price, and profit on a
graph
3. MULTIPLE CHOLICE:
Refer to the above diagram for a monopolistically
competitive firm in short-run equilibrium. This firm will
realize an economic:
A. loss of $320
B. profit of $480
C. profit of $280
D. profit of $600
Monopolistic Competition - Long
Run Equilibrium and Efficiency
Explain why
Monopolistically Competitive firms earn zero economic
profits in the long run
Draw the long run equilibrium
graph for Monopolistic Competition
Discuss the efficiency of
Monopolistically Competitive firms in the long run and
show the following on the graph:
- profit maximizing
quantity
- allocatively efficient quantity
- productively efficient quantity
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