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Question
It has been argued that a monopolistically competitive industry involves ʺwasteʺ because
A) there is too much product differentiation making shelves too crowded.
B) they end up producing to the right of the minimum of the average total cost curve and the price is below the marginal cost.
C) the firms do not equate marginal cost to marginal revenue to find the profit maximizing price and output.
D) the firms do not produce at the minimum of the average total cost curve and price is above marginal cost.
Answer
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Related questions
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