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For the following questions assume a market that operates under monopolistic competition. c) Nike researchers have developed a new type of running shoe that provides
For the following questions assume a market that operates under monopolistic competition.
c) Nike researchers have developed a new type of running shoe that provides more support for peoples' ankles and knees while running. Draw a diagram to show what happens to the market for Nike's running shoes, assuming the Nike was initially making a normal profit.
d) Explain, with the aid of a diagram, what would happen to Nike's market share in the long run following the events in part (c) above.
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