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Economics Mcqs
Q
Which of the following is true with regard to monopolistically competitive firms scale of production and pricing decisions Monopolistically competitive firms produce ?
AA. At the efficient scale and charge a price equal to marginal cost
BB. At the efficient scale and charge a price above marginal cost
CC. With excess capacity and charge a price above marginal cost
DD. With excess capacity and charge a price equal to marginal cost
Correct Answer:
C. C. With excess capacity and charge a price above marginal cost
