In perfect competition, firms set price equal to marginal cost. Why cant firms do this when there

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In perfect competition, firms set price equal to marginal cost. Why can’t firms do this when there are internal economies of scale?

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International Economics Theory and Policy

ISBN: 978-0273754206

9th Edition

Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz

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Question Posted: Oct 24, 2012 11:38 PM

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In perfect competition, firms set price equal to marginal cost. Why cant firms do this when there

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With internal economies of scale there is imperfect competition ...View the full answer

International Economics Theory and Policy

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