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The Model of Monopolistic Competition Characterizes the Market for Plumbing

Question 91

Multiple Choice

The model of monopolistic competition characterizes the market for plumbing services in a city.Suppose that the market is in long-run equilibrium.For a typical plumbing firm,price:


A) equals average total cost.
B) exceeds average total cost.
C) is less than average total cost.
D) is greater than the average for all other firms in the market.

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