In the long run, monopolistically competitive firms charge prices:

A. equal to the minimum of average total cost.
B. equal to marginal cost.
C. below marginal cost.
D. above the minimum of average total cost.


Answer: D

Economics

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A. raise; recessionary B. reduce; recessionary C. raise; expansionary D. reduce; expansionary

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In a competitive market the current price is $5 . The typical firm in the market has ATC = $5.50 and AVC = $5.15

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An increase in the budget deficit causes domestic interest rates

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