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Bhdj2319 Bhdj2319
  • 29-05-2024
  • Business
Answered

If firms are competing in monopolistic competition and if AC < p where MR = MC ,
A) firms earn positive profits and new firms will enter.
B) firms earn negative profits and existing firms will leave.
C) firms earn zero profits and new firms will not enter and no existing firms will leave.
D) None of these.

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