In monopolistic competition, a firm has a limited degree of "price-making" ability. This means that the firm will:
A. set price above marginal cost.
B. set price equal to marginal cost.
C. always earn an economic profit.
D. produce at minimum average total cost.
Answer: A
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a. total revenue and accounting costs. b. price and marginal cost. c. total revenues and economic costs. d. economic costs and average cost.
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Indicate whether the statement is true or false