Graphically Show the Transition from Short-Run to Long-Run Equilibrium for a Monopolistic

question 20

Essay

Graphically show the transition from short-run to long-run equilibrium for a monopolistic competitor. Begin by drawing a graph of short-run equilibrium. In the graph, have the firm make an economic profit at its profit-maximizing level of output. Identify its short-run profit, and then show and describe how profits will disappear in long-run equilibrium.

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Definitions:

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A serious liver infection caused by the hepatitis B virus (HBV) that can become chronic and lead to liver failure, cancer, or cirrhosis.

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A condition resulting from an insufficient, excessive, or imbalanced intake of nutrients.

Vector

An agent, such as an insect or rodent, that carries and transmits a disease-causing organism from one host to another.

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The mechanism by which a disease spreads from one individual to another, either through direct contact, vectors, or environmental factors.