Even if the firms in a monopolistically competitive market


Even if the firms in a monopolistically competitive market collude successfully and fix price, economic profit will still be competed away if there is unrestricted entry. Do you agree with this statement? Support your answer. Will price be higher or lower under such an agreement in long-run equilibrium than would be the case if firms didn't collude? Explain fully.

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Business Economics: Even if the firms in a monopolistically competitive market
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