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Firms with costs C = q^2 + 36 face demand P = 24 - nq and behave under the rules of Monopolistic Competition. Compute and illustrate the prices and quantities that occur in the short run, with one monopolist, and in the long run, where entry has occurred. Illustrate, find out and describe how the ef?ciency loss is affected by this entry.

Microeconomics, Economics

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