Question 3 In a monopolistically competitive industry, firms set price Group of answer choices equal to marginal cost since each firm is a price taker. below marginal cost since each firm is a price taker. above marginal cost since each firm is a price setter. always a fraction of marginal cost since each firm is a price setter.

Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter16: Monopolistic Competition
Section: Chapter Questions
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Question 3
In a monopolistically competitive industry, firms set price
Group of answer choices
equal to marginal cost since each firm is a price taker.
below marginal cost since each firm is a price taker.
above marginal cost since each firm is a price setter.
always a fraction of marginal cost since each firm is a price setter.
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