Multiple Choice
In a monopolistically competitive industry, which statement is true?
A) MR = MC ≤ P = ATC in the long run
B) ATC is minimized in the long run.
C) MC = P > ATC and a firm can earn positive economic profits in the long run.
D) MC = ATC = P in the long run equilibrium.
E) None of the above.
Correct Answer:
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