Why does monopolistic competition deliver neither productive nor allocative efficiency

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Economics

Description

  • Why does monopolistic competition deliver neither productive nor allocative efficiency?
  • Chapter 12 of the textbook or peer reviewed source no investopedia.

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Explanation & Answer

Attached.

Running head: MONOPOLISTIC COMPETITION

Monopolistic Competition
Institutional Affiliation
Date

1

MONOPOLISTIC COMPETITION

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Monopolistic competition is a market structure where firms compete but sell different
products. Some of its attributes include, each firm makes its own pricing decisions based on its
costs of production, the entrepreneur has more roles than in a perfectly competitive ma...


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