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A firm's research department has estimated that if other firms in the industry are indifferent to change in the price of its product, its demand
A firm's research department has estimated that if other firms in the industry are indifferent to change in the price of its product, its demand curve will be:
Qd = 3000 - 200p
However if other firms always charge the same price it does, the firm's demand curve will be
QM = 1500 - 50p
Illustrate that MC = 15 is price rigid. All curve must be labelled.
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