Monopolistic competition may lead to each of the following except

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Monopolistic competition is characterized by a large number of firms producing differentiated products, which results in excess capacity and non-price competition. Over-differentiation may also occur as firms try to differentiate their products further to gain a competitive advantage. However, monopolistic competition does not necessarily lead to peak efficiency, as firms may not be able to fully exploit economies of scale and may have higher costs due to differentiation.

Monopolistic Competition May Lead to Each of the Following Except