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    Exam 26: Product Differentiation and Innovation in Markets
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    In a Monopolistically Competitive Market with Dixit-Stiglitz Preferences, Equilibrium Price
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In a Monopolistically Competitive Market with Dixit-Stiglitz Preferences, Equilibrium Price

Question 7

Question 7

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In a monopolistically competitive market with Dixit-Stiglitz preferences, equilibrium price falls as the goods in the differentiated product market become more substitutable.

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