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प्रश्न
What happens in a market with free entry and exit under monopolistic competition?
विकल्प
New firms cannot enter even if there are profits
Firms can enter when there are profits and leave when there are losses
Only government-approved firms can enter
Existing firms can never leave the market
MCQ
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उत्तर
Firms can enter when there are profits and leave when there are losses
Explanation:
Free entry and exit mean that profit opportunities attract new firms, and losses push firms to exit, helping to regulate the number of firms in the market.
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