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'Much Ado About Nothing' is considered a comedy because it all ends happily ever after. There are no 'good' characters (or protagonists) left dead or unhappy, only the evil ones (that is, Don John, Borachio and Conrad).
The play is also considered a comedy because of the humorous interaction between characters, such as the witty insult exchanges between Benedick and Beatrice in Act 1 Scene 1, and the slapstick comedy of Dogberry and Verges at the guard.
One of the reasons the play is considered a comedy is that it is about relationships and humorous tricks characters play on one another, as opposed to murder and treachery like a tragedy such as Romeo and Juliet would have.
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