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-If the Monopolistic Competitor Firm Described by the Graph Above

Question 30

Multiple Choice

  -If the monopolistic competitor firm described by the graph above is producing at the profit-maximising (loss-minimising)  level of output, it A)  is generating zero profits. B)  is generating profits. C)  could be generating either profits or losses depending on what quantity it chooses to produce. D)  is generating losses.
-If the monopolistic competitor firm described by the graph above is producing at the profit-maximising (loss-minimising) level of output, it


A) is generating zero profits.
B) is generating profits.
C) could be generating either profits or losses depending on what quantity it chooses to produce.
D) is generating losses.

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