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  • 05-04-2021
  • Business
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why do monopolistic firms exhibit excess capacity?

Respuesta :

s26214643
s26214643 s26214643
  • 05-04-2021

Answer:

Excess capacity under monopolistic competition is caused by product differentiation that leads to product variety and quality, which is beneficial to consumers. Consumers generally do not prefer homogenous products. Technically, excess capacity increases consumer satisfaction.

Explanation:

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