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In the table below, there are some Competitive Monopoly price ratios. By price ratio, I mean the ratio of the price of the named product
In the table below, there are some Competitive Monopoly price ratios. By "price ratio", I mean the ratio of the price of the named product to the price of competing prod- ucts. For example, if other brands of ketchup cost on av- erage $2.00 for a certain size, Heinz would cost $3.40 for the same size. That's a price ratio of 1.7 to 1. Product Price Ratio Kellogg's Corn Flakes 1.5 to 1 Tylenol Pain Reliever 1.6 to 1 Group A Heinz Ketchup 1.7 to 1 Bayer Aspirin 2.5 to 1 Listerine Mouthwash 3.0 to 1 Tabasco Pepper Sauce 4.6 to 1 Group B Advil Pain Reliever 5.2 to 1 Now, look at these two charts: Case 1 and Case 2. Case 1: 2 3 4 5 6 8 10 11 12 13 14 15 16 17 18 19 20 Marginal Cost ---Demand Marginal Revenue Case 2: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Marginal Cost Demand Marginal Revenue Which Group (A or B) is most likely to be Case 1?_B Which Group (A or B) is most likely to be Case 2? A How can you tell? Type your answer and a full, detailed explanation here
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