a. Draw a pair of diagram illustrating both Short-run and Long Run equilibrium of Chamberlinian monopolistic...

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a. Draw a pair of diagram illustrating both Short-run and Long Run equilibrium of Chamberlinian monopolistic competition. The diagrams contain average cost, average variable cost, marginal cost, and marginal revenue curves and shade area that represents abnormal profit. Make your diagrams large and label all curves, axes, and points (10 points). b. In the price-leadership-by-a-dominant-firm model: a. After the dominant firm sets the market price, what is the output-supply behavior of the remaining firms in the industry? (10 points)

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