The Theory of Imperfect Competition Figure 6-3: Equilibrium in a monopolistically Competitive Market Cost C, and Price, P CC AC. E P2, AC2 AC1 PP Number 2 of firms, n Copyright C 2003 Pearson Education, Inc Slide 6-22Copyright © 2003 Pearson Education, Inc. Slide 6-22 PP Cost C, and Price, P Number of firms, n CC P3 AC3 n1 n3 AC1 n2 AC2 E Figure 6-3: Equilibrium in a Monopolistically Competitive Market The Theory of Imperfect Competition P2 , P1