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    Economics Today
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    Exam 25: Monopolistic Competition
  5. Question
    In Which Market Structure Will a Firm Choose Not to Shut
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In Which Market Structure Will a Firm Choose Not to Shut

Question 8

Question 8

Multiple Choice

In which market structure will a firm choose not to shut down when price is less than average variable cost?


A) Perfect competition
B) Monopoly
C) Monopolistic competition
D) None of the above. All firms will shut down when P < AVC.

Correct Answer:

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