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How Do Firms in Monopolistically Competitive Industries Maximize Profits

Question 17

Multiple Choice

How do firms in monopolistically competitive industries maximize profits?


A) by producing at a level where marginal cost equals marginal revenue
B) by producing at a level where average variable cost equals average revenue
C) by producing at a level where average total cost equals average revenue
D) by producing at a level where average variable cost equals marginal cost

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