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Answer to Question #129140 in Microeconomics for Lisa
Question #129140
Explain, with the aid of a graph, the short run equilibrium position of a firm operating in the monopolistic competitive market structure
Expert's answer
AC-average cost
sr-short-run
D-demand
MC- marginal cost
MR-marginal revenue
P-price
Q-quantity
In short-run monopolist can not adapt in time and production does not change. If demand decrease the company losing money if demand increase the monopolist get more income.
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