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Question
If a monopolistically competitive firm wants to maximize profits, it will increase production until marginal
a. revenue is greater than average variable cost.
b. revenue equals average total cost.
c. cost is greater than marginal revenue.
d. revenue equals average revenue.
e. revenue equals marginal cost.
Answer
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Related questions
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What is the long-run consequence of a price ceiling law?
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Suppose Solomon lives in a community with no price controls. What do you expect will happen if his town borders a community where there is a binding price ceiling on most products?
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