Question:
Which Conditions are Relaxed in a Monopolistic Competition Structure?
Author: eric_galvaoAnswer:
-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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