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In the Short Run for a Firm in a Monopolistically

Question 4

Multiple Choice

In the short run for a firm in a monopolistically competitive industry:


A) P > MC = MR; there is a DWL.
B) P = MC; there is no DWL.
C) P must be equal to ATC, and there is a positive DWL.
D) P < AVC, there is a DWL
E) As the firm faces a perfectly elastic demand curve at the market price, MR = MC = P, and there is no DWL.

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