What are the characteristics of monopolistic competition

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(a) What are the characteristics of monopolistic competition?

(b) Why is the firm's demand curve flatter than the total market demand curve in monopolistic competition?

(c) Suppose a monopolistically competitive firm is making a positive economic profit in the short run. What will happen to its demand curve in the long run? And what will be its economic profit in the long run? Briefly Explain.

Reference no: EM13219275

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