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If a Monopolistically Competitive Firm Breaks Even, the Firm

Question 128

Multiple Choice
If a monopolistically competitive firm breaks even, the firm
A)is earning an accounting profit and will have to pay taxes on that profit.
B)is earning zero accounting and zero economic profit.
C)should advertise its product to stimulate demand.
D)should expand production.

If a monopolistically competitive firm breaks even, the firm


A) is earning an accounting profit and will have to pay taxes on that profit.
B) is earning zero accounting and zero economic profit.
C) should advertise its product to stimulate demand.
D) should expand production.

Correct Answer:

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