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We have information on demand and cost. Now where should the firm set the price? Before examining a monopolist's situation, it's useful to start with
We have information on demand and cost. Now where should the firm set the price? Before examining a monopolist's situation, it's useful to start with the benchmark case of a competitive market. Let's say there are many nearly identical firms making this particular product. In a competitive market (and assuming there are no ongoing fixed costs), what would the price of a 1000-unit dose drop to? $0 $8 $16 $50
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