The monopolistic competitorA) produces at the minimum point of her average total cost curve.B) maximizes profits but does not minimize losses.C) is usually a small firm.D) can be a monopoly.

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Brittany Nicole · Accepted Answer

Final Answer : C, Explanation :  Monopolistic competitors are usually small firms that produce differentiated products, meaning they have some control over their prices. However, they do not have the market power of a monopoly and face competition from other firms selling similar, but not identical, products. Therefore, they cannot produce at the minimum point of their average total cost curve and may not always maximize profits since they have to consider the impact of their price on consumer demand.

The monopolistic competitor

A) produces at the minimum point of her average total cost curve.
B) maximizes profits but does not minimize losses.
C) is usually a small firm.
D) can be a monopoly.

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