If entry is completely free, the demand curve for the leading, profit-making monopolistic competitor will
A. move to the right until where MC=MR is where the ATC curve is tangent to the demand curve.
B. become steeper while moving to the right.
C. move to the left until where MC=MR is where the ATC curve is tangent to the demand curve.
D. move to the left until where MC=MR is where the AVC curve is tangent to the demand curve.
Answer: C
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