Question
monopolistic competition also taking ease of entry and exit into account and the assumption that is mentioned in the textbook is The easier
monopolistic competition also taking " ease of entry and exit" into account and the assumption that is mentioned in the textbook is " The easier it is, the less costly- the entry is, the more current monopolistic competitor must worry about losing business (Miller, 2018). I think that this will keep happening because of the stabile competition as well as the demand and supply. New pizzerias need to charge similar prices as their competitors in order to gain some of the markets share. New pizzerias take the time to build a customer base and breakeven or make a profit simply because they are new and cannot include markups to my a profit from the beginning because they need to be competitively priced among as well as other things such as advertising, promotions, great service and exceptional chefs who make very good pizzas in order to survive in the industry. The lack of advertisement and affordability most certainly affects the company's ability to become successful. What other reasons they would closed doors?
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