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Unformatted text preview: firm has freedom to produce any small or large quantity such as Q1, Q2, Q3 etc. The firm cannot charge a higher or lower price than the OP. If it attempts to charge a somewhat higher price like OP1 assuming competition, the firm will be able to sell nothing. On the other hand, if it charges a somewhat lower price OP2 the firm will unnecessarily suffer losses....
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This note was uploaded on 11/26/2011 for the course EC ec 201 taught by Professor - during the Fall '10 term at Montgomery.
- Fall '10