If competition places discipline on costs, motivating firms to innovate and find more cost-effectiveways to produce, explain why in some markets asingle firm without competitors will produce ata lower cost than if the firm faced competition.
If competition places discipline on costs, motivating firms to innovate and find more cost-effectiveways to produce, explain why in some markets asingle firm without competitors will produce ata lower cost than if the firm faced competition.
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter22: Price Takers And The Competitive Process
Section: Chapter Questions
Problem 9CQ
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Question
If competition places discipline on costs, motivating firms to innovate and find more cost-effective
ways to produce, explain why in some markets a
single firm without competitors will produce at
a lower cost than if the firm faced competition.
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