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Retail Clothing Stores Provide a Good Example of Monopolistic Competition

Question 13

Multiple Choice

Retail clothing stores provide a good example of monopolistic competition because


A) there are few firms in the industry.
B) there are significant barriers to entry in the industry.
C) each firm possesses somewhat unique attributes in the form of location, service, and variety of merchandise.
D) profit margins are generally quite large for retail establishments.
E) firms in the industry face horizontal demand curves for their products.

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