Why is monopolistic competition said to be inefficient? Suppose that you counted the higher price the consumer
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Why is monopolistic competition said to be inefficient? Suppose that you counted the higher price the consumer pays for the monopolistically competitive firm’s product as part of consumer surplus. Would that change the conclusion regarding the efficiency of monopolistic competition?
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Monopolistic competition is often considered inefficient due to several reasons Excess Capacity Monopolistically competitive firms often operate with ...View the full answer
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