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    Microeconomics Principles for a Changing World
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    Exam 10: Monopolistic Competition, Oligopoly, and Game Theory
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    Under Monopolistic Competition, Entry of New Firms Typically Causes Price
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Under Monopolistic Competition, Entry of New Firms Typically Causes Price

Question 83

Question 83

Multiple Choice

Under monopolistic competition, entry of new firms typically causes price to _____ and profits to _____.


A) decrease; decrease
B) decrease; increase
C) increase; increase
D) increase; decrease

Correct Answer:

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