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The Downward-Sloping Demand Curve of the Monopolistic Competitor

Question 11

Multiple Choice

The downward-sloping demand curve of the monopolistic competitor


A) becomes horizontal in the long run.
B) results from the absence of any competition.
C) reflects product differentiation.
D) ensures the firm produces at minimum average cost in the long run.
E) indicates collusion among the members of the product group.

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