Economics for Business Decisions

Answer A monopolistically competitive economy suggests that the competitors strive for differentiation in their products in terms of branding or other added features. Such economy has imperfect competition where the company focuses stringently on impact of their rivals prices on them rather than being vice versa. Price and quantity are key parameters for XYZ Corporation that deals in professional digital cameras in such economy (Boyes and Melvin, 220-222). Assuming that XYZ operates at optimum level, the following quantity and price would be chosen by themIn accordance with the given information, as XYZ is facing inverse demand curve i.e. if price increases demand decreases therefore at 10,000 cameras the price that XYZ would charge will beIs this likely to be a long-run equilibrium for