Which of the Following Is True of the Output Level

question 120

Multiple Choice

Which of the following is true of the output level produced by a firm in long-run equilibrium in a monopolistically competitive industry?

• A) It produces at minimum average cost.
• B) It does not produce at minimum average cost, and average cost is increasing.
• C) It does not produce at minimum average cost, and average cost is decreasing.
• D) Either B or C could be true.

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