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1) A good real-world example of monopolistic competition is
A. lawyers
B. gas stations
C. Time Warner Cable
D. groceries stores
2 An industry comprising a small number of firms, each of which considers the potential reactions of its rivals in making price-output decisions, is called
A. monopolistic competition
B. oligopoly
C. pure monopoly
D. pure competition
3) In which of the following industries are economies of scale exhausted at relatively low levels of output?
A. Aircraft production
B. Automobile manufacturing
C. Concrete mixing
D. Newspaper printing
4) The average cost curves (AVC and ATC) should be minimized
A. where MC = ATC and MC = AVC
B. where FC = ATC and FC = AVC
C. where TC starts to increase at a faster rate
D. where ATC = AVC
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