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Economics

Why Chamberlin has adopted traditional U shaped cost curve in his theory of monopolistic competition?

A. U shaped curves imply that there is only single level of out which can be produced optimally.
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B. U shaped curves imply that there is two level of out which can be produced optimally.
C. Both a & b
D. None of the above

CORRECT ANSWER IS: U shaped curves imply that there is only single level of out which can be produced optimally.