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Because of one assumption in the theory of monopolistic competition, the excess capacity theorem ...

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Because of one assumption in the theory of monopolistic competition, the excess capacity theorem ...

Because of one assumption in the theory of monopolistic competition, the excess capacity theorem exists. What is the assumption?

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There are many sellers and buyers.

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Each firm produces and sells a slightly differentiated product.

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There is easy entry into the industry.

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There is easy exit from the industry.

Textbook

Economics

Edition: 12^th

Author: Arnold

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madizm

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More solutions for this book are available here

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cheesyboots Author

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6 months ago

I appreciate what you did here, answered it right Smiling Face with Open Mouth

GeorgeNeist

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Smart ... Thanks!

branbran2k16

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Thanks for your help!!

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