Multiple Choice
Due to the ease of entry of new firms into monopolistically competitive markets in the long run, existing firms in these markets:
A) produce at the lowest average total cost.
B) charge a price equal to marginal cost.
C) earn no economic profit in the long run.
D) take advantage of economies of scope.
E) earn no economic profit in the short run.
Correct Answer:
Verified
Correct Answer:
Verified
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