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Choose the Correct Statement About Firms in Monopolistic Competition

Question 45

Multiple Choice

Choose the correct statement about firms in monopolistic competition.


A) All firms make positive economic profit.
B) The price is set equal to marginal cost to achieve maximum economic profit.
C) Price is lower than in perfect competition.
D) Production always takes place at minimum average total cost.
E) The price is always greater than the marginal cost.

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