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Economic Definition of monopolistic competition profit curve. Defined.

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Term monopolistic competition profit curve Definition: A profit-maximizing monopolistically competitive firm produces output where economic profit is the greatest. A profit curve graphically represents the relation between economic profit earned by a monopolistically competitive firm and the quantity of output sold. The profit curve can be derived directly from a table of profit and output quantity numbers. However, it is frequently obtained from a graph of the total revenue and total cost curves. The nice thing about a profit curve is that it clearly illustrates the quantity of output which maximizes a firm's economic profit.


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