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OpenStudy (anonymous):
A major characteristic of monopolistic competition is that prices will be
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OpenStudy (elizabeths):
higher than in perfect competition, Producer has a small market power. It can charge higher price than in the perfect competition which is selling homogeneous product. But the price will not be higher than in monopoly due to more substitutes are available.
OpenStudy (anonymous):
Producer has a small market power. It can charge higher price than in the perfect competition which is selling homogeneous product. But the price will not be higher than in monopoly due to more substitutes are available
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