In a monopolistically competitive market, as new firms continue to enter, the demand that a typical firm faces continues to shift. It will stop when the demand (price) is equal to its This means a typical firm earns economic profits in the long run. a. Average cost; positive b. Marginal cost; zero c. Average cost; zero d. Average variable cost; zero
In a monopolistically competitive market, as new firms continue to enter, the demand that a typical firm faces continues to shift. It will stop when the demand (price) is equal to its This means a typical firm earns economic profits in the long run. a. Average cost; positive b. Marginal cost; zero c. Average cost; zero d. Average variable cost; zero
Chapter1: Making Economics Decisions
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Transcribed Image Text:In a monopolistically competitive market, as new firms continue to enter, the demand that a typical firm faces continues to
shift. It will stop when the demand (price) is equal to its
. This means a typical firm earns
economic profits in
the long run.
a. Average cost; positive
b. Marginal cost; zero
c. Average cost; zero
d. Average variable cost; zero
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