Have on monopolistically competitive markets

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Reference no: EM131704332

In many countries, to encourage new businesses to join the market place the government provides some sorts of support such as a firm could write off $10,000 startup costs, or investors who invested in small businesses would be exempt from capital gain tax if they sold their shares for profits, or firms would be exempt from corporate tax for the first two years, etc. Discuss the effects these incentives would have on monopolistically competitive markets.

Reference no: EM131704332

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