Why is there a cluster of prices rather than a single

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a. Why does a prospective monopolistic competitor find it relatively easy to start production in the long run?

b. Why does the demand curve of a monopolistic competitor shift down when more firms start production?

c. Why is it difficult or impossible to define the industry under monopolistic competition?

d. Why is there a cluster of prices rather than a single equilibrium price in this kind of industry?

Reference no: EM13314563

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