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A Monopolistically Competitive Firm Can Increase Its Price Without Losing

Question 127

Multiple Choice

A monopolistically competitive firm can increase its price without losing all its market share because


A) of product differentiation.
B) of the small number of firms in the industry.
C) the demand curve is very inelastic.
D) of the unavailability of close substitutes.
E) the products are homogeneous.

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