Does the number of firms in an industry with constant, Project Management

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Does the number of firms in an industry with constant

1. Does the number of firms in an industry with constant marginal costs necessarily converge to infinity as the entry cost turns to zero? Explain.

2. Why are we interested in empirically estimating models of product differentiation? (After all, to understand the intensity of competition in the short run, we only need to know the Lerner index.)

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