We assume that competitive firms are price takers explain
We assume that competitive firms are "price takers." Explain what this means. What is keeping competitive firms from setting prices? Is this a plausible assumption? For which industries is it a likely assumption? For which is it not plausible?
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we assume that competitive firms are price takers explain what this means what is keeping competitive firms from
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suppose there is a market for hotdogs in equilibrium draw a diagram below of such a market now suppose that the price
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