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December 21, 2014

Homework Help: Microeconomics

Posted by G on Sunday, October 19, 2008 at 5:41pm.

Monopolistic Competition

The administrtive burden of regulating price in monopolistically competive market:

A. small due to economies do scale

B. large because price is usually below marginal cost

C. large because of the large number of firms that produce differentiated products

D. small because firms produce with excess capacity

I picked D?

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