To maximize its profit, a monopolistically competitive firm produces at the output level at which
a. its price elasticity of demand equals one.
b. MR = MC.
c. its D curve is tangent to its ATC curve.
d. MR = AVC.
b
Economics
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When one more car enters a crowded highway it increases the travel times of all other drivers on the highway creating a negative externality
a. True b. False Indicate whether the statement is true or false
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