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A Monopolistically Competitive Firm and a Monopoly Are Similar Because

Question 10

Multiple Choice

A monopolistically competitive firm and a monopoly are similar because


A) both firms will earn zero profits in the long run.
B) both firms always operate at their point of minimum average cost.
C) they each face a downward-sloping demand curve.
D) both firms must behave strategically toward other firms in the industry.
E) each firm has a large number of competitors.

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