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Which of the following necessarily exists for a monopolistic competitor in the short run? quizlet

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High prices and profits signal consumers' demand for more output.

The high profits attract new suppliers.

Production and supplies expand.

Prices slide down the market demand curve.

A new equilibrium is established wherein more of the desired product is produced, its price falls, average costs of production approach their minimum, and economic profits approach zero.

Price equals marginal cost throughout the process.

Throughout the process, there is great pressure to reduce costs or improve product quality.

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necessarily exists monopolistic competitor short run quizlet

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