You are shown a graph of a monopolist in long-run equilibrium and a graph of a monopolistically competitive firm in short-run equilibrium. How could you tell which is which?
A) You probably could not.
B) In the graph of monopolistic competition, the MR curve could be closer to the demand curve.
C) In the graph of monopoly, the MR curve would be closer to the demand curve.
D) In the graph of monopoly, the MC would slope upward.
Correct Answer:
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