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Econ 4-13-2011 - Choose price and then quantity demanded is...

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Econ 4-13-2011 14:23 Focus on 12-16 Chapter 12     Short Run =  Fixed costs Long Run = All costs are variable Chapter 15     Oligopoly Duopolists would do best to act like a monopolist Have incentive to cheat by producing more The specifics of how firms interact matter o Quantity Competition Choose quantity level, then price is determined o Price competition
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Unformatted text preview: Choose price, and then quantity demanded is met Chapter 16 Monopolistic Competition • Differentiated product, similar to monopoly in that demand curve slopes downward and MR<P • Free entry/exit – similar to competition in that there will be zero profits in the long run • Fast Food Produce as long as MR<=MC 14:23 14:23...
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