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Question
Profit-maximizing, monopolistically competitive firms
a. consider the actions of their competitors when determining price.
b. consider the actions only of the price leader in their market when determining price.
c. consider only marginal cost and marginal revenue, which determine the level of outputand the level of output determines price.
d. consider only average total cost and average variable cost, which determine the level of outputand the level of output determines price.
e. take their price from the industry price, as do perfectly competitive firms.
Answer
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