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Business, 28.05.2020 01:05 gegrgrkj

Fuzzy Feet is a monopolistically competitive firm that faces the following demand schedule for its socks. The firm has a fixed cost of $10 and a constant zero marginal cost. In the long run, what is the likely outcome for Fuzzy Feet? Other firms will leave the market, making it more profitable for this firm. Fuzzy Feet will operate at its full capacity achieving it most efficient scale. More firms will enter the market but the price for the good will not change. The firm should expect the demand curve to shift to the left.

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