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Firms Are Incentivized to Enter a Monopolistically Competitive Market If

Question 57

Multiple Choice

Firms are incentivized to enter a monopolistically competitive market if:


A) positive profits are being earned and the price is below marginal cost.
B) zero profits are being made and the entering firms can duplicate the product exactly.
C) positive profits are being earned and the entering firms can create a similar product.
D) zero profits are being made and the entering firms can create a similar product.

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