Suppose a perfectly competitive market for hot-dog stands in New York City becomes monopolistically competitive when gourmet,

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Suppose a perfectly competitive market for hot-dog stands in New York City becomes monopolistically competitive when gourmet, discount, and ethnic hot-dog retailers show up, making each cart slightly different. If hot dogs from different stands are now imperfect substitutes and there are numerous carts in the city, compare the producer and consumer surplus and total social welfare before and after the change.
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Microeconomics

ISBN: 978-1259163531

1st edition

Authors: Dean Karlan, Jonathan Morduch

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