Type of model used by economists
Which type of model is used by the economists to analyze competitive market?
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Economists employ the model of supply and demand to analyze competitive markets. In competitive market, there are numerous buyers and sellers, each of whom has little or no persuade on the market price.
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This graph depicts a short run situation while long run equilibrium has been achieved for a firm along with some market (price-making) power when the firm cannot price discriminate and: (w) has explicit costs but no i
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