Louisiana State University, Shreveport ECON ECON 705 The ability of a firm to raise its price while still maintaining a…
In a monopolistically competitive market,
every firm’s demand curve is equivalent to every other firm’s demand curve.
firms produce relatively close (but not perfect) substitutes.
one firm has a significant advantage in terms of market share compared to the other firms.
it is prohibitively expensive for new firms to enter.
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