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If Toothpaste Manufacturers Compete in a Monopolistically Competitive Market,then

Question 22

Multiple Choice

If toothpaste manufacturers compete in a monopolistically competitive market,then:


A) firms are price takers.
B) firms try to differentiate their products from those of competitors.
C) firms maximize profits by choosing output where price equals marginal cost.
D) there are significant barriers to entering the toothpaste industry.

Correct Answer:

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