Which of the following is true with regard to monopolistically competitive firms' scale of production and pricing decisions? Monopolistically competitive firms produce
A) At the efficient scale and charge a price equal to marginal cost.
B) At the efficient scale and charge a price above marginal cost.
C) With excess capacity and charge a price above marginal cost.
D) With excess capacity and charge a price equal to marginal cost.
Correct Answer:
Verified
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