In the Krugman model with economies of scale and monopolistic competition (with L =Amount of labor hired by the firm, Q = quantity of output of the firm, W = wage rate for Labor, P = price of the firm's product, and a and b are constants), the equation that states The labor requirement of the firm is __________. In the model, the existence of zero Profits for the firm in long-run equilibrium can be stated as __________.

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In the Krugman model, the labor requirement of the firm is represented by L = a + bQ, where a is the fixed labor requirement and bQ represents the variable labor requirement depending on the quantity of output. The condition for zero profits in long-run equilibrium is given by PQ = W(a + bQ), where the revenue (PQ) equals the total cost (W times the labor requirement).

In the Krugman Model with Economies of Scale and Monopolistic