Fill in the blanks.A monopolistically competitive firm, unlike a ________, could increase the quantity it produces and lower the ____________:

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A perfectly competitive firm is a price taker, meaning it has no control over the price of its product. Therefore, increasing quantity would lead to a decrease in price, resulting in a lower profit margin. However, a monopolistically competitive firm has some control over the price of its product, allowing it to increase quantity and lower average total cost without experiencing a significant decrease in profit margin.

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