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The More Elastic a Monopolistic Competitor's Long-Run Demand Curve, the

Question 63

Multiple Choice

The more elastic a monopolistic competitor's long-run demand curve, the


A) greater its excess capacity.
B) higher its price relative to that of a pure competitor having the same cost curves.
C) lower its long-run economic profit.
D) lower its average total cost at its profit-maximizing level of output.

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