Critically evaluate and explain: a. In monopolistically competitive industries, economic profits are competed away in the long
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a. In monopolistically competitive industries, economic profits are competed away in the long run; hence, there is no valid reason to criticize the performance and efficiency of such industries.
b. In the long run, monopolistic competition leads to a monopolistic price but not to monopolistic profits.
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a The first part of the statement may well be true but it does not lead logically to the second part ...View the full answer
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Related Book For
Economics
ISBN: 978-0073375694
18th edition
Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn
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