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The demand curve facing a monopolistically competitive firm is quite elastic because A) the industry is producing a homogeneous product. B) goods that are complements
The demand curve facing a monopolistically competitive firm is quite elastic because
A)
the industry is producing a homogeneous product.
B)
goods that are complements to the good the firm is producing also have elastic demand curves.
C)
there are many close substitutes to the good the firm is producing.
D)
firms are not behaving strategically.
E)
of the possibility of entry of new firms.
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