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16 of 25 The first unit of an information product is produced at a high fixed cost Producing additional units entails relatively low total costs marginal and average variable cost. external cost. social cost 17 of 25 Long-run equilibrium is characterized by zero profits in e monopolistic competition only e perfect competition only 9 both perfect competition and monopolistic competition market structures in which there are barriers to entry.

20 of 25 A monopolistic competitor is in long-run equilibrium when it is making zero profits and price equals marginal cost its average total cost curve is tangent to the demand curve at the profit-maximizing rate of output price is greater than marginal cost. it is making positive profits or zero profits and price is greater than marginal cost

please explain answers. unsure on #17 & #20

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Answer #1

Ans. 16) Marginal and Average Variable Cost = Due to the prices of Diminshing Marginal Cost.

17) Both perfect competition and monopolistic competition - This is because more firms would join the market in long run and profits would get distributed.

18) It's Average Total Cost curve is Tangent to the demand curve at the profit maximizing rate of output - This is because the monopolistic market is not efficient and this would make it impossible to earn economic profit in long run and the firm would break even.

Best of Luck !! !!

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