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A student said, profit maximizing firm in a monopolistically competitive industry will price its product at the average revenue however the price will be greater

  1. A student said,"profit maximizing firm in a monopolistically competitive industry will price its product at the average revenue however the price will be greater than the marginal revenue". Do you agree or disagree with this statement? Show evidence by setting up the average revenue and marginal revenue functions for the firm. Define all variables. Use graph(s) to support your answer.

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