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Suppose You Operate in a Monopolistically Competitive Market

Question 64

Multiple Choice

Suppose you operate in a monopolistically competitive market. If you sell your good at a price of $20 and your average cost of production is $15


A) your market may be in long-run equilibrium.
B) you cannot be in short-run equilibrium.
C) you should expect competing firms to enter your market and shift the demand curve for your good to the left.
D) you should expect competing firms to enter your market and shift the demand curve for your good to the right.

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