The Figure Given Below Shows the Revenue and Cost Curves

question 97

Multiple Choice

The figure given below shows the revenue and cost curves of a monopolistically competitive firm.Figure 12.4
MR: Marginal revenue curve
ATC: Average total cost curve
MC: Marginal cost curve
-Which of the following is true of the model of monopolistic competition?

• A)Barriers to entry enable firms to enjoy positive profits in the long run.
• B)The number of firms declines over time as a result of economies of scale.
• C)The monopolistically competitive firms enjoy a greater market power than a monopolist.
• D)Firms tend to locate near each other in order to minimize total travel costs for consumers.
• E)The firms end up charging same prices for their individual products.

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Definitions:

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Lesbian

A female who experiences emotional, romantic, or sexual attractions to other females.

Female Genital Mutilation

A harmful cultural practice involving the partial or total removal of the external female genitalia for non-medical reasons.