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AP® Microeconomics

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Moderate

Nadia's Firm Breaks even

APMICR-SFBCHM

Nadia owns a business that is part of a monopolistically competitive industry.

In the short run, Nadia and her competitors were incurring losses, so many of them shut down. In the long run, Nadia will now set her price:

A

above marginal cost and above average total cost.

B

above marginal cost and equal to marginal revenue

C

above average total cost and equal to marginal revenue

D

equal to marginal cost and below average total cost

E

equal to average total cost and above marginal cost