The shape of demand curves firms face may change from one form of market structure to another.
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Why does Walmart have a downward-sloping demand curve while a dairy farmer has a horizontal demand curve? What other suppliers might face a downward-sloping demand curve?
- How do barriers to entry into and exit from the industry impact the level of competition in a market? What might happen to the market price as greater barriers to entry into and exit from the market come into existence?
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