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A Profit-Maximizing Firm in Monopolistic Competition Should Shut Down in the Short

Question 36

Multiple Choice

A profit-maximizing firm in monopolistic competition should shut down in the short run if _____


A) marginal revenue is less than price.
B) price is more than average total cost.
C) price is less than average fixed cost.
D) price is less than average variable cost.
E) marginal revenue is equal to marginal cost.

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