Costume jewelry is produced in a monopolistically competitive market. One producer produces 700 necklaces and at that output level, MR = MC = $3. We know then that
A) the price is $3
B) economic profit is $2,100
C) the price is higher than $3
D) new firms will enter the market
E) the firms should produce the 700 necklaces in the short run, but shut down in the long run
Correct Answer:
Verified
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