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Question
Since the firm in the above figure is operating in a monopolistically competitive industry, in the long run we can expect to see
A) the typical firmʹs economic profits expand as production becomes more efficient.
B) more firms entering the industry until economic profits are zero.
C) the typical firm producing at the minimum point on its ATC curve.
D) each firm expand its share of the total market.
Answer
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Related questions
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Which of the following statements is FALSE?
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The United Statesʹ balance of payments is likely to improve whenA) there is an increase in political instability in other countries.B) the inflation rate in the United States rises relative to other countries.C) the American government increases its spending on foreign aid. D) American people want to invest more in foreign countries.