Chapter- Imperfect competition and strategic behaviour.

** Please add references if you use any.

1.McDonald's, Harvey's, and Wendy's all produce hamburgers, among other things. However, if you prefer burgers from McDonald's, you might consider other burgers an imperfect substitute. With this in mind, how would you expect McDonald's to set its prices in the short run? Describe the relationship between price, marginal revenue, and marginal cost.

*Please add references if you use any.