(Answered) The firm under monopolistic competition is likely to

Economics

The firm under monopolistic competition is likely to produce less and set a higher price than under perfect competition because

a) the firm faces decreasing returns to scale.

b) the firm faces increasing costs.

c) the firm must incur selling expenses, including advertising.

d) the firm operates where marginal revenue equals marginal cost.

e) the firm faces a downward sloping demand curve.

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