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From course:

Economics A Level (DONEEEEEEE)

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Question:

In a Monopolistic Competition Structure, how can the Short Run act as a Monopoly?

Author: eric_galvao



Answer:

-Barriers to Entry and Product Differentiation can allow Supernormal Profits to Develop. This is only in the Short Run though -The Only Difference between Monopolies and this is that the Demand Curve for Monopolistic Competition is more Elastic


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