Cecilia's Cafe is a monopolistic competitor.If Cecilia's is currently producing at the output level at which her average total cost is minimized and the cafe is earning an economic profit,then,in the long run,output will
A) decline and average total cost will increase
B) decline and average total cost will decrease
C) remain unchanged as Cecilia's strives to minimize costs
D) increase and average total cost will be greater
E) increase and average total cost will be smaller
Correct Answer:
Verified
Q55: Q56: Which of the following is an example Q57: A market in which a small number Q58: Q59: In monopolistic competition,product differentiation causes Q61: Oligopolies feature Q62: All of the following are examples of Q63: The output level at which a firm's Q64: By keeping new firms from entering the Q65: In order for a market to be![]()
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A)the firms to
A)the absence of barriers to entry
B)extensive
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