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In a Monopolistically Competitive Industry,price

Question 90

Multiple Choice

In a monopolistically competitive industry,price


A) will be lower than the competitive price due to cost savings.
B) will exceed the monopoly price due to the destructiveness of competitive forces.
C) cannot be predicted exactly because it is likely to lie between the competitive and monopoly prices.
D) is contingent on the behavior of other firms because they are mutually interdependent.
E) is most likely a bit higher than the competitive market price because of the cost of variety.

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