Question

Why does excess capacity exist in monopolistic competition?

Answer 1

$hii$
⤵⤵

It is due to the existence of excess capacitythat average cost of production and price of product are higher and output smaller monopolistic competition than under perfect competition. ... Now, demand curve facing individual firms under monopolistic competition slopes downward due to product differentiation found in it.

Answer 2

❤️$\huge\underline\mathfrak{heya}$❤️

✨It is due to the existence of excess capacity that average cost of production and price of product are higher and output smaller monopolistic competition than under perfect competition. ... Now, demand curve facing individual firms under monopolistic competition slopes downward due to product differentiation found in it.

✨HOPE IT HELPS..❤️