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A firm with market power charges a price that is than the price charged by a perfectly competitive firm. A potential advantage of this to customers is that
A. lower, it allows the firm to increase its production.
B. higher, it provides the firm with the incentive to research, develop, and improve their products.
C. lower, it saves the customers money.
D. higher, it allows the firm to produce more than a competitive firm.
Please Explain Answer
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