Which of the Following Is/are TRUE of Monopolistic Competition

question 109

Multiple Choice

Which of the following is/are TRUE of monopolistic competition?
I. Monopolistic competitive firms do not produce at the minimum of their average cost curves.
II. Monopolistic competitive firms produce at the minimum of their average cost curves.
III. Monopolistic competitive firms earn higher profits than monopolies.

• A) I only
• B) II only
• C) I and III only
• D) II and III only

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