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From course:

Economics A Level (DONEEEEEEE)

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Question:

Which Conditions are Relaxed in a Monopolistic Competition Structure?

Author: eric_galvao



Answer:

-Product Differentiation can exist because of Advertising and/or Real Differences between Products. This allows some Price Making Power, having the Demand Curve go Downwards. The Difference between the Documents reflects how Price Elastic as well -No Barriers, or only Low Barriers to Entry. If Supernormal Profit existed, then New Firms can Join in easily


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