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The Graph Shown Displays the Cost and Revenue Curves Associated

Question 34

Multiple Choice

The graph shown displays the cost and revenue curves associated with a monopolistically competitive firm. The graph shown displays the cost and revenue curves associated with a monopolistically competitive firm.   This firm: A) will cause deadweight loss equal to area C. B) will earn profits equal to area B. C) should act like a monopolist in the short run. D) should leave the industry in the long run. This firm:


A) will cause deadweight loss equal to area C.
B) will earn profits equal to area B.
C) should act like a monopolist in the short run.
D) should leave the industry in the long run.

Correct Answer:

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