Many restaurants are not 100% full all day long, especially in the late morning and during the

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Many restaurants are not 100% full all day long, especially in the late morning and during the afternoon. Economists call this “excess capacity” and it is a characteristic result of monopolistic competition. What would restaurants have to do in order to be closer to 100% full all of the time? Why won’t they do this?
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Modern Principles of Economics

ISBN: 978-1429278393

3rd edition

Authors: Tyler Cowen, Alex Tabarrok

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