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Q. |
If the Average Total Cost curve of a firm in monopolistic competition happens to be above the demand curve, it means: |
A. | the firm will have to sell a lot in order to make a profit |
B. | the firm will have to sell at a very high price in order to make a profit |
C. | other firms are performing better in the market than the firm depicted in the diagram |
D. | that firms in that industry will be incurring losses in the short run |
Answer» D. that firms in that industry will be incurring losses in the short run |
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