One problem with the theory of monopolistic competition is that it is difficult to define a market and to identify the firms that comprise it.

Question

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The theory of monopolistic competition, which describes a market structure where many companies sell products that are similar but not identical, faces the challenge of defining what exactly constitutes a market and determining which firms are part of it, due to the nuanced differences in products and consumer perceptions.

One Problem with the Theory of Monopolistic Competition Is That