Phoenix industries has pulled off a miraculous recovery. four years ago it was near bankruptcy. today, it announced a $3 per share dividend to be paid a year from now, the first dividend since the crisis. analysts expect dividends to increase by $1 a year for another 2 years. after the third year (in which dividends are $5 per share) dividend growth is expected to settle down to a more moderate long-term growth rate of 6%. of the firm’s investors expect to earn a return of 16% on this stock, what must be its price?

Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact thatmr=mc at the optimal quantity for each firm. furthermore, a monopolistically competitive firm's average total cost in long-run equilibrium isless than the minimum average total cost. true or false: this indicates that there is a markup on marginal cost in the market for engines. true false monopolistic competition may also be socially inefficient because there are too many or too few firms in the market. the presence of the externality implies that there is too little entry of new firms in the market.