College textbooks have been increasing in price at a rate greater than the general price level over

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College textbooks have been increasing in price at a rate greater than the general price level over the past several decades. The reason for this phenomenon appears to be that publishers have realized that by having authors revise their texts more frequently, competition from used texts is reduced. Using the dominant firm model, explain how such a more-frequent- revision strategy leads to a higher price for a given textbook.

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Microeconomics Theory and Applications

ISBN: 978-1118758878

12th edition

Authors: Edgar K. Browning, Mark A. Zupan

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