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Mrs Smith's Bakery Shop Is a Firm in Monopolistic Competition

Question 45

Multiple Choice

Mrs. Smith's bakery shop is a firm in monopolistic competition. The firm's marginal revenue curve


A) is upward sloping.
B) is downward sloping and above the demand curve.
C) is a horizontal line.
D) is the same as the demand curve.
E) is downward sloping and lies below the demand curve.

Correct Answer:

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