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Use the Following for Questions 22-31

Question 37

Multiple Choice

Use the following for questions 22-31.
Exhibit: Profit Maximization in Monopolistic Competition
Use the following for questions 22-31. Exhibit: Profit Maximization in Monopolistic Competition    -(Exhibit: Profit Maximization in Monopolistic Competition)  In determining the price in monopolistic competition: A)  the price to the firm is given by supply and demand for the industry. B)  the firm is a price taker. C)  the firm applies the marginal decision rule. D)  A and B are true.
-(Exhibit: Profit Maximization in Monopolistic Competition) In determining the price in monopolistic competition:


A) the price to the firm is given by supply and demand for the industry.
B) the firm is a price taker.
C) the firm applies the marginal decision rule.
D) A and B are true.

Correct Answer:

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