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Business, 10.05.2021 16:30 emily200705
Cliff's Candy produces and sells boxes of chocolates. When Cliff produces and sells his profit-maximizing quantity of 1,000 boxes, the average total cost is $3.00. If Cliff were to produce 1,100 boxes, the average total cost would be $2.50. Which of the following inefficiencies of monopolistically competitive markets is described in this scenario?
a. Product-variety externality
b. Business-stealing externality
c. Markup over marginal cost
d. Excess capacity
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Answers: 2
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Cliff's Candy produces and sells boxes of chocolates. When Cliff produces and sells his profit-maxim...
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