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| 7.Consider the following statements:Statement 1: “When oligopoly firms cheat on price fixing agreements, the resulting price and output quantity approaches that of perfect competition.”Statement 2: “Monopolistic competition is inefficient because a large deadweight loss from advertising and marketing costs is a characteristic of this form of competition.”With respect to these statements: A:A:only one is correct B:B:both are correct C:C:both are incorrect. |
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