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Figure 8.1 -Figure 8.1 Depicts Demand and Costs for a Monopolistically Competitive

Question 95

Multiple Choice

Figure 8.1 -Figure 8.1 depicts demand and costs for a monopolistically competitive firm. At the profit maximizing output level A) this firm is earning economic profits equal to zero. B) this firm is earning economic profits equal to Q₁(P₁ - AC₁) . C) this firm is earning economic profits equal to P₁(Q₁ - AC₁) . D) this firm is in long-run equilibrium. Figure 8.1
-Figure 8.1 depicts demand and costs for a monopolistically competitive firm. At the profit maximizing output level


A) this firm is earning economic profits equal to zero.
B) this firm is earning economic profits equal to Q₁(P₁ - AC₁) .
C) this firm is earning economic profits equal to P₁(Q₁ - AC₁) .
D) this firm is in long-run equilibrium.

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