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Since the Demand Curve Faced by a Monopolistically Competitive Firm

Question 5

Multiple Choice

Since the demand curve faced by a monopolistically competitive firm is downward sloping,


A) the firm is a price-taker in the short run
B) in the long run there will be excess capacity
C) the output decisions of one firm will influence profits of all other firms
D) the product in the market is viewed by consumers as being standardized
E) the ATC curve is U-shaped

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