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What Will Happen If a Second Firm Enters a Natural

Question 62

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What will happen if a second firm enters a natural monopolistic market?


A) The demand curve of the typical firm will shift to the left.
B) The demand curve will lay above the long-run average cost curve.
C) The profit will be reduced to zero for both firms.
D) It will have no effect on the profit of the first firm.

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