Multiple Choice
A monopolistic competitive firm differentiates its product (from similar products) in the minds of the buying public. As a result, the firm
A) may earn positive economic profits, even with easy entry into the industry.
B) will definitely earn positive economic profits.
C) will be able to lower its costs below that of its competitors.
D) finds that its fixed costs are sunk costs.
E) a and c
Correct Answer:
Verified
Correct Answer:
Verified
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