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In short run a firm in monopolistic competition

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Economics
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In short run, a firm in monopolistic competition

Answer & Solution
Correct Answer: Option D
In short run, a firm in monopolistic competition may earn normal profit, super normal profit or incur losses. In the short run, a monopolistically competitive firm maximizes profit or minimizes losses by producing that quantity that corresponds to when marginal revenue = marginal cost. If average total cost is below the market price, then the firm will earn an economic profit.
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