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Under the Model of Monopolistic Competition,a(an)_ in the Number of Firms

Question 10

Multiple Choice

Under the model of monopolistic competition,a(an) _ in the number of firms in the industry will cause to .


A) increase; average price; decrease
B) increase; marginal cost; decrease
C) increase; average cost; decrease
D) increase; average price; increase
E) decrease; markup; decrease

Correct Answer:

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