What is the profit maximizing principle for a perfectly competitive producer? O a. Price Marginal Cost O b. Marginal Revenue O c. Marginal Revenue>Marginal Cost Od. None of the above A Moving to another question will save this response. Question 5 What is true about producers in an industry with monopolistic competition? O a. They are able to sell slightly differentiated products O b. It is hard to enter or exit such an industry, thus there are very few competitors or producers in the market O c. Both a) and b) are correct O d. Neither a) nor c) is correct .... Moving to another question will save this response. Question 5 of 25 > >> 1 points Save Answer Question 5 of 25 > >> A Moving to another question will save this response. Question 6 Why does the Average Total Cost initially decrease as quantity produced increases in the short run? O a. Because the spreading effect is stronger and overtakes the diminishing returns effect O b. Because Average Fixed Cost starts rising as quantity produced increases O c. Because the diminishing returns effect grows stronger and overtakes the spreading effect O d. Because the diminishing returns effects becomes weaker as quantity produced increases A Moving to another question will save this response. < Question 6 of 25 > >> 1 points Save Answer < Question 6 of 25 > >>