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In the monopolistic competition model, a firm's (using a technology with increasing returns to scale as described in class) average costs of production depend on:
In the monopolistic competition model, a firm's (using a technology with increasing returns to scale as described in class) average costs of production depend on:
a. the capital structure of the firm (i.e. how it finances its assets via equity vs. debt).
b. the size of the market
c. how firms discount the future
d. whether the country engages in intra-industry trade
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