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Which of the Following Is True If a Monopolistically Competitive

Question 230

Multiple Choice

Which of the following is true if a monopolistically competitive firm has excess capacity?


A) it has exhausted all economies of scale.
B) it is producing beyond the minimum efficient scale.
C) it is experiencing diseconomies of scale.
D) it produces an output rate that places it on the negatively sloped portion of its average total cost curve.

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