If you were an entrepreneur in a perfectly com petitive market, would you attempt to innovate? Why or why not?
Answer to relevant QuestionsWhy do firms produce where MR = MC? Why not at the lowest point on their ATC curves? After all, it's the most efficient level of output. Why are demand curves for perfectly competitive firms horizontal and for firms in monopolistic competition downward sloping? Compare John K. Galbraith's and Alfred Marshall's views on innovation and plant size. How does the behavior of an oligopolist differ from the behavior of a monopolist? From a firm in perfect competition? From a firm in monopolistic competition? What is price discrimination? Why would a firm want to price discriminate? Cite examples.
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