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Market Equilibrium — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsMarket Equilibrium1 Mark
Question
A firm under monopolistic competition connot decide the price, however it has partial control over it. Why?
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Answer

Above statement is correct, that firms under monopolistic competition cannot decide the price. However, due to product differentiation, they have partial control over price, hence they can charge a price a little over or below its competitors, depending upon the distinct features of its products.

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