Graph 17-1 
-Refer to Graph 17-1, panel A.Assume the market is monopolistically competitive and in long-run equilibrium.If drawn in, the average total cost curve would be:
A) tangent to the demand curve at the market price, Pa
B) tangent to the demand curve where marginal cost intersects demand
C) tangent to the marginal revenue curve at the market price, Pa
D) tangent to the marginal revenue curve at the point where marginal cost intersects marginal revenue
Correct Answer:
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Q69: Graph 17-3 Q70: A monopolistically competitive firm chooses: Q71: The entry and exit of firms in Q72: Graph 17-3 Q73: When firms are encouraged to enter monopolistically Q75: If firms in a monopolistically competitive market Q76: Economic losses are in a monopolistically competitive Q77: If firms in a monopolistically competitive industry Q78: If firms in a monopolistically competitive market Q79: As new firms enter a monopolistically competitive![]()
A)price, but output![]()
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