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Toby Operates a Small Deli Downtown

Question 122

Multiple Choice

Toby operates a small deli downtown.The deli industry is monopolistically competitive.Toby,along with every other deli in town,is producing the quantity that minimizes average total cost.Assuming the delis are maximizing profits,the:


A) number of delis will eventually decrease.
B) number of delis will eventually increase.
C) delis' prices equal their average total costs.
D) delis have excess capacity.

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