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29 April, 14:35

When a monopolistically competitive firm raises its price,

a. the market supply curve shifts outward.

b. quantity demanded falls to zero.

c. quantity demanded declines but not to zero.

d. quantity demanded remains constant?

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Answers (1)
  1. 29 April, 15:03
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    B, because monopolistic market sells homogeneous goods. When a firm raises its price, it loses all of the customers
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