Question 13.13.   If monopolistically competitive firms in an industry are making an economic profit, then new firms will enter the industry and the product demand facing existing firms will         increase.        become less elastic.        not be affected.        decrease.

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A: please find the answer below.

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A:

Q: Output Price FC VC TC TR…

A: Monopolistic competition: It refers to that competition in which the producer has no choice to…

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Q: Explain five types of pricing strategies adopted in the monopolistic competition market structure

A: 5 types of pricing strategies in monopolistic competition market. Competition based pricing Cost…

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Q: Question 14 Compare and discuss the differences in the mark-up and excess capacity of the firm in…

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Q: Complete the following table by indicating if each attribute characterizes a competitive market, a…

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Q: You are hired as a consultant to a monopolistically competitive firm. The firm reports the following…

A: In monopolistic competition, price is will be greater than marginal revenue (MR).

Q: Because of substantial barriers to entry, monopolistically competitive firms can easily earn long…

A: The monopolistically market structure is characterized by firms selling similar products but goods…