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A Firm in Monopolistic Competition Is Similar to a Firm

Question 59

Multiple Choice

A firm in monopolistic competition is similar to a firm in perfect competition because they both


A) can make only zero economic profit in the short run.
B) maximise their profits by producing where P = MR = MC.
C) can make only zero economic profit in the long run.
D) Both answers A and C are correct.
E) Both answers B and C are correct.

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