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Question
A monopolistic competitor is in long-run equilibrium when
A) economic profits are equal to zero and the average total cost curve is tangent to the demand curve.
B) economic profits are equal to zero and the marginal cost curve is tangent to the demand curve.
C) economic profits are greater than zero and the average total cost curve is tangent to the demand curve.
D) economic profits are greater than zero and the marginal cost curve is tangent to the demand curve.
Answer
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