Even in firms in a monopolistically competitive market collude successfully and fix price, economic profit will still
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Even in firms in a monopolistically competitive market collude successfully and fix price, economic profit will still be competed away if there is unrestricted entry. Explain. Will price be higher or lower under such an agreement in long-run equilibrium than would be the case if firms didn’t collude? Explain.
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In monopolistic competition the long run profits are driven to zero normal levels so that total reve...View the full answer
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Related Book For
Managerial Economics Foundations of Business Analysis and Strategy
ISBN: 978-0078021718
11th edition
Authors: Christopher Thomas, S. Charles Maurice
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