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Use the Dixit and Stiglitz model to find and compare the Optimum Product Variety (OPV) of a society where consumers do not value differentiated products,
Use the Dixit and Stiglitz model to find and compare the Optimum Product Variety (OPV) of a society where consumers do not value differentiated products, with the OPV of another society where differentiation is highly valued. What does this comparison tell us about whether product differentiation is welfare enhancing for society? Use relevant diagram(s) to illustrate your answer.
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