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    Exam 13: Monopolistic Competition: the Competitive Model in a
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    Why Do Most Firms in Monopolistic Competition Typically Make Zero
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Why Do Most Firms in Monopolistic Competition Typically Make Zero

Question 238

Question 238

Multiple Choice

Why do most firms in monopolistic competition typically make zero profit in the long run?


A) because firms produce differentiated products
B) because the lack of entry barriers would compete away profits
C) because firms do not produce at their minimum efficient scale
D) because the total market is not large enough to accommodate so many firms

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