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United StatesMicroeconomicsQuick questions

Unit 4: Imperfect Competition

Quick questions on Monopolistic Competition - AP Microeconomics Topic 4.4

2short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is q1?
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State what happens to a monopolistically competitive firm's economic profit in the long run and why. [2 points]
What is q2?
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Define excess capacity. [1 point]

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