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Which of the Following Is True of Monopolistic Competition but Not

Question 74

Multiple Choice

Which of the following is true of monopolistic competition but not of monopoly?


A) The firm will earn zero economic profit in the long run.
B) The firm will produce at the point where average total cost is minimized.
C) There are barriers to the entry of new firms.
D) The firm will produce at the point where marginal revenue equals marginal cost.

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