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As Firms Enter a Monopolistically Competitive Market in the Long

Question 63

Multiple Choice

As firms enter a monopolistically competitive market in the long run


A) price increases, the market quantity demanded increases, and the quantity supplied by an individual firm increases.
B) price decreases, the market quantity demanded increases, and the quantity supplied by an individual firm decreases.
C) price decreases, but firm profits increase as average costs decrease.
D) price increases and firm profits increase.

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