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Which of the Following Statements Is Not True for a Monopolistically

Question 205

Multiple Choice

Which of the following statements is not true for a monopolistically competitive industry?


A) Firms tend to operate with excess capacity.
B) Each firm faces a downward-sloping demand curve.
C) These firms earn zero economic profits in the long run.
D) Firms operate at the lowest point of their ATC curves in the long run.

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