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Graph 17-1 -Refer to Graph 17-1, Panel A.Assume the Market Is Monopolistically

Question 74

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Graph 17-1 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, P<sup>a</sup> B) tangent to the demand curve where marginal cost intersects demand C) tangent to the marginal revenue curve at the market price, P<sup>a</sup> D) tangent to the marginal revenue curve at the point where marginal cost intersects marginal revenue
-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

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