How does the presence of pirated, 3D toys affect the price that Disney charges for a Frozen
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How does the presence of pirated, 3D toys affect the price that Disney charges for a Frozen or Inside Out toy? Assume that Disney has a constant marginal cost MC. It faces a large number of identical, higher-cost rivals-the competitive fringe-which acts like (competitive) price takers so that their collective supply curve is horizontal at \(p_{2}=M C+x\).
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