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Under monopolistic competition, a firm's ability to influence the price of the product it sells arises because:

User Lightyears
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Answer:

The answer is because of product differentiation

Step-by-step explanation:

Under monopolistic competition, the sellers' product are differentiated from one another and this gives the sellers the power to influence prices.

Like perfect competition, the market has many buyers and sellers, free entry and exit but the major difference between the two is the product differentiation.

For example in the mobile phone market, we have Samsung, Infinix, Iphones, Oppo etc. They are all mobile phones but they are different from from one another in the aspect of specifications. iPhones usually charge highest. There is customers' loyalty in this market.

User Pygin
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