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82.When entry occurs in a monopolistically competitive industry, marginal costs

ID: 1198883 • Letter: 8

Question

82.When entry occurs in a monopolistically competitive industry,

marginal costs to society exceed the price people are willing to pay.

price is equal to marginal revenue gained by society.

the marginal revenue curve will shift to the left.

a smaller quantity will be demanded at any given price.

83.Shopping malls typically lease retail space to a large number of clothing stores. When this group of retailers competes to sell similar but not identical products, they engage in what economists call ________________________.

a cartel

collusion

monopolistic competition

perfect competition

marginal costs to society exceed the price people are willing to pay.

price is equal to marginal revenue gained by society.

the marginal revenue curve will shift to the left.

a smaller quantity will be demanded at any given price.

Explanation / Answer

82. the marginal revenue curve will shift to the left.

83.monopolistic competition

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