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What Would Happen If Regulators Required Firms in Monopolistically Competitive

Question 89

Multiple Choice
What would happen if regulators required firms in monopolistically competitive markets to set price equal to marginal cost

What would happen if regulators required firms in monopolistically competitive markets to set price equal to marginal cost


A) Firms would most likely experience economic losses.
B) Firms would operate at the maximum efficient scale.
C) new firms would be likely to enter the market.
D) firms would try to lower their average total cost.

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