(Solved): ] Suppose that a company operates in the monopolistically competitive market f ...

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Suppose that a company operates in the monopolistically competitive market for electric razors. The following graph shows the demand curve, marginal revenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve for the firm. Place a black point (plus symbol) on the graph to indicate the long-run monopolistically competitive equilibrium price and quantity for the Because this market is monopolistically competitive, you can tell that it is in long-run equilibrium by the fact that at the optimal quantity for each firm. Further, the quantity the firm produces in long-run equilibrium is the efficient scale. True or False: This indicates that there is excess capacity in the market for razors. True False Monopolistically competitive markets may be socially inefficient due to the presence of to many or the firms. The presence the externality implies that there is too little entry of new firms in the market. Because this market is monopolistically competitive, you can tell that it is in long-run equilibrium by the fact that for each firm. Further, the quantity the firm produces in long-run equilibrium is the efficient s? True or False: This indicates that there is excess capacity in the market for True False Because this market is monopolistically competitive, you can tell that it is in long-run equilibrium by the fact that for each firm. Further, the quantity the firm produces in long-run equilibrium is the efficient scale. True or False: This indicates that there is excess capacity in the market for razc True False setitive markets may be socially inefficient due to the presence of too many or too few firms. The presence of the externality implies that there is too little entry of new firms in the market.