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If the Pharmaceutical Industry Is Monopolistically Competitive, Then in the Long-Run

Question 57

Multiple Choice

If the pharmaceutical industry is monopolistically competitive, then in the long-run, _____.


A) the price of medicines will equal marginal revenue
B) the price of medicines will exceed marginal cost
C) firms earn economic profits
D) the price of medicines will be equal to marginal cost
E) firms earn negative economic profits

Correct Answer:

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