In the long run, the monopolistically competitive firm's demand curve will
A) intersect the ATC at its minimum point.
B) intersect the ATC curve somewhere past the minimum point.
C) become tangent to the ATC curve at its minimum point.
D) become tangent to the ATC curve somewhere to the left of its minimum point.
D
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A successful cartel must divide the market among its members to prevent members'
A) marginal cost from exceeding their individual marginal revenues. B) output from decreasing. C) prices from rising above the cartel price. D) selling costs from rising.
It is assumed that the marginal benefit of air cleanliness falls with the degree of cleanliness since
A) the marginal cost of air cleanliness increases. B) air cleanliness is a public good and not a private good. C) the marginal utility of air cleanliness falls with the degree of cleanliness. D) the generation of pollution should be considered an externality.