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Although Monopolistically Competitive Markets Offer Consumers a Wide Variety of Differentiated

Question 226

Multiple Choice

Although monopolistically competitive markets offer consumers a wide variety of differentiated products, there may still be insufficient variety if


A) there are large fixed costs in the market.
B) there are no barriers to entry in the market.
C) the business-stealing externality is present in the market.
D) the government does not impose regulations on the market.

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