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12 When a profit-maximising firm in a monopolistically competitive market is producing the break-even quantity O A. it will be earning economic profits O B.

12 When a profit-maximising firm in a monopolistically competitive market is producing the break-even quantity O A. it will be earning economic profits O B. its demand curve will be tangent to its average total cost curve O C. its demand curve can be above, below or be tangent to its average total cost curve O D. its marginal revenue will exceed marginal cost

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