Freedom of entry and exit in monopolistic competition
A) means that firms' price and average total cost of producing are always equal.
B) never allows firms to earn economic profits.
C) leads to falling prices when new firms enter the market.
D) forces firms to abandon product differentiation but only in the long run.
C
Economics
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What will be an ideal response?
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Conducting the nation's monetary policy is the duty of the
A) Department of Commerce. B) U.S. Treasury department. C) Federal Reserve System. D) Federation of Banks. E) Federal Bank Supervisor.
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