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Which One of the Following Statements Is True About a Monopolistically

Question 29

Multiple Choice

Which one of the following statements is true about a monopolistically competitive firm in long-run equilibrium?


A) Its output is larger than it would be under conditions of perfect competition.
B) Its average cost is lower that it would be under conditions of perfect competition.
C) It is producing at economic capacity just as it would be under conditions of perfect competition.
D) Its price is equal to its marginal cost just as it would be under conditions of perfect competition.
E) None of the choices are correct.

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