Suppose a Firm Makes a Product Whose Price Decreases as the Output

question 13

Multiple Choice

Suppose a firm makes a product whose price decreases as the output increases.The firm is in a market with many other firms.It is most likely that the firm:

• A)is a monopoly
• B)makes a product that is identical to the other firms, hence is in a competitive market
• C)makes a similar product to others, hence is in a monopolistically competitive market
• D)makes zero economic profit in the long run

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