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Question: Consider two different ways of beating your competition. One way is to offer your customers lower prices and better service. The other is to

Question: Consider two different ways of beating your competition. One way is to offer your customers lower prices and better service. The other is to get a law passed that raises your competitors' costs -- for example, by imposing special operating requirements on them. Can you see any difference between those two methods, assuming that both succeed in keeping your competition out? Describe the impact of each way to restrict competition on prices and output.

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