A2 Revision – Impact of an increase in variable costs in monopolistic competition.

With the A2 multiple-choice paper over the next few days you should note that the impact of an increase in variable costs in monopolistic competition. The graph can throw up a variety of questions – the new area of supernormal profit, area of total revenue before or after, technical optimum output, allocative efficiency output, area of deadweight loss, profit maximising output etc.

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