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Which of the following describes an industry that experiences economies of scale, even at high levels of output? Monopolistic competition Perfectly competitive industry Natural monopoly Oligopoly CONCEPT Constant, Increasing and Decreasing Cost Industries 2 If the market price of apples drops to $9, at which of the following will the firm be? Below the shutdown point Making a profit Just breaking even Operating at a short term loss At the shutdown point CONCEPT Breakeven Point 3 Which of the following market structures has only one seller, who acts as a price maker? Monopolistic competition Oligopoly Monopoly Perfect competition CONCEPT Monopoly 4 Which of the following is why the long run average cost curve must lie at the same level or below any short run average cost curve?
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