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Answer to Question #109948 in Economics for Sittherran

Question #109948
suppose all firms in a monopolistically competitive industry were merged into one large firm. would that new firm produce as many different brands?
1
Expert's answer
2020-04-17T09:55:41-0400

In this case monopolistic competition becomes a monoly. The output that maximizes the profit is less than previously, however the monopoly can continue to produce different brands in order to use price discrimination


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