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Even in firms in a monopolistically competitive market collude successfully and fix price, economic profit will still be competed away if there is...

This question was answered on Jan 10, 2013. View the Answer
Even in firms in a monopolistically competitive market collude successfully and fix price, economic profit will still be competed away if there is unrestricted entry. Explain. Will price be higher or lower under such an agreement in long-run equilibrium than would be the case if firms didn’t collude? Explain.
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Even in firms in a monopolistically competitive market collude successfully and fix price,
economic profit will still be competed away if there is unrestricted entry. Explain. Will price be
higher...

This question was asked on Jan 06, 2013 and answered on Jan 10, 2013.

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