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fattykay92 fattykay92
wrote...
Posts: 323
A week ago

Sparkle, one of many firms in the market for toothpaste, is in long-run equilibrium. Sparkle has a small market share and has been in business for a long time.

a.

Identify the market structure in which Sparkle operates. Explain your answer.

b.

What is Sparkle's profit or loss? Explain your answer. If you cannot determine the profit or
loss, explain what information is missing.

c.

Draw a diagram showing Sparkle's demand curve, marginal revenue curve, average total cost
curve, and marginal cost curve. Label your diagram.
Textbook 

InMicro


Edition: 1st
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Answer verified by a subject expert
JaxJax
wrote...
Posts: 289
A week ago
Sign in or Sign up in seconds to unlock everything.

a.

Monopolistic competition; products are differentiated and there are many sellers.

b.

Profit = 0 because the firm is in long-run equilibrium.

c.

See the figure below.


1

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