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AP® Microeconomics

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Monopolistic Competition from Short-Run to Long-Run

APMICR-EUB0DX

The graph below represents a representative firm in monopolistic competition in the short-run.

What will happen to the price and output of firms in this industry in the long-run?

A

Price will increase, and output will increase.

B

Price will decrease, and output will decrease.

C

Price will increase, and output will decrease.

D

Price will decrease, and output will increase.

E

Price and output will remain unchanged.