Economics Q70

0. Analyst 1: For firms operating under monopolistic competition, the supply curve is equal to the average cost curve.
Analyst 2: For firms operating under monopolistic competition, the supply curve is equal to the marginal cost curve.
Which analyst is most likely correct?

Answer
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Option : C
Explanation : Firms operating under monopolistic competition do not have welldefined supply functions, so neither the marginal cost curve nor the average cost curves are supply curves in this case.

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