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Consider a Monopolistically Competitive Industry Which Is in Long-Run Equilibrium

Question 95

Multiple Choice

Consider a monopolistically competitive industry which is in long-run equilibrium.Which of the following is true?


A) All firms charge a price equal to average total cost.
B) All firms charge a price equal to marginal cost.
C) All firms make an economic profit.
D) The demand,average total cost,and marginal cost curves all intersect at the same point.
E) Firms have an incentive to enter the industry.

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