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Question 178

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Use the following to answer questions:
Figure: Monopolistic Competitor Use the following to answer questions: Figure: Monopolistic Competitor -(Figure: Monopolistic Competitor) The firm shown in the figure Monopolistic Competitor may engage in advertising because: A) it does not know any better. B) its price is greater than its MC. C) its profits are negative. D) this will decrease its excess capacity levels.
-(Figure: Monopolistic Competitor) The firm shown in the figure Monopolistic Competitor may engage in advertising because:


A) it does not know any better.
B) its price is greater than its MC.
C) its profits are negative.
D) this will decrease its excess capacity levels.

Correct Answer:

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