price is less than average cost in a monopolistically competitive market: A. there is no incentive for the number of firms in the market to change B. there is an incentive for firms to exit the market. C. the market must be in long-run equilibrium. D. there is profit incentive for firms to enter the market.
price is less than average cost in a monopolistically competitive market: A. there is no incentive for the number of firms in the market to change B. there is an incentive for firms to exit the market. C. the market must be in long-run equilibrium. D. there is profit incentive for firms to enter the market.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter10: Monopolistic Competition And Oligoply
Section: Chapter Questions
Problem 6SQP
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Question
If price is less than average cost in a
A. there is no incentive for the number of firms in the market to change
B. there is an incentive for firms to exit the market.
C. the market must be in long-run equilibrium.
D. there is profit incentive for firms to enter the market.
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