Economics 9708 · AS & A Level · 7.6

7.6 — practice question

What is most likely to be observed when the long-run equilibrium outcome in monopolistic competition is compared with that in perfect competition?

  • Aa greater degree of excess capacity in monopolistic competition
  • Ba higher level of profit in monopolistic competition
  • Ca larger number of firms in monopolistic competition
  • Da more price-elastic demand curve in monopolistic competition

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