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A monopolistically competitive firm is earning positive economic profit. Which of the following must be true? (2 points) The firm is not in long-run equilibrium.
A monopolistically competitive firm is earning positive economic profit. Which of the following must be true? (2 points)
The firm is not in long-run equilibrium. | |
The firm is not producing where marginal revenue equals marginal cost. | |
The firm is receiving a per-unit subsidy. | |
The firm is operating with allocative efficiency. | |
The firm's price is the level where marginal revenue equals marginal cost. |
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