The national government and some state governments in India provide incentives to entice new business ventures for

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The national government and some state governments in India provide incentives to entice new business ventures for less developed areas of the country to increase employment. Subsidies may be offered to reduce the cost of transportation, investment in plant and machinery, and loans relating to new industrial units. What effect would these incentives have on the number of firms and the firms' profits in monopolistically competitive markets in those areas of the country? Explain.

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Microeconomics

ISBN: 9781292215624

8th Global Edition

Authors: Jeffrey Perloff

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