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    Foundations of Macroeconomics
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    Exam 17: Monopolistic Competition
  5. Question
    If a Firm Has Excess Capacity,it
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If a Firm Has Excess Capacity,it

Question 9

Question 9

Multiple Choice

If a firm has excess capacity,it


A) produces less than its efficient scale.
B) should advertise to maximize profits.
C) should decrease its markup to increase its profit.
D) is a perfectly competitive firm.
E) must face a horizontal demand curve.

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