Suppose You Operate in a Monopolistically Competitive Market

question 202

Multiple Choice

Suppose you operate in a monopolistically competitive market. If you sell your good at a price of $10 and your average cost of production is $8

• A) your market is in long-run equilibrium.
• B) we can expect firms to enter your market and sell a similar good in the long run.
• C) there will be no incentive for competing firms to enter your market in the long run.
• D) you cannot be in short-run equilibrium.

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