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The Monopolistic Competitor Depicted Below Would Find That Which of the Following

Question 20

Multiple Choice

The monopolistic competitor depicted below would find that which of the following is INCORRECT?
The monopolistic competitor depicted below would find that which of the following is INCORRECT? Figure 7.2 A) The profit-maximizing rate of output is q<sub>e</sub>, and the profit maximizing price is P. B) The demand curve shows that the firm faces a perfectly elastic demand. C) The profit maximizing rate of output is indicated by E, where MR intersects MC. D) A downward sloping marginal revenue curve lies below the demand curve. Figure 7.2


A) The profit-maximizing rate of output is qe, and the profit maximizing price is P.
B) The demand curve shows that the firm faces a perfectly elastic demand.
C) The profit maximizing rate of output is indicated by E, where MR intersects MC.
D) A downward sloping marginal revenue curve lies below the demand curve.

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