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| Topic: |
Business
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| Number of pages / Number of words: |
23 / 6367 |
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Consider the case of Firm A in the diagram below. The firm is assumed to have half the total market demand. It can profit maximize and still achieve economic profit. The other firm in the market will also profit maximizes at the same point and earns the same total profits. In the absence of a change in demand (which may not go equally to each firm) and/or a change in each firm's costs of production, neither firm has any reason to undercut the other...
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In the absence of a change in demand (which may not go equally to each firm) and/or a change in each firm's costs of production, neither firm has any reason to undercut the other.
1.2 MAIN TYPE OF CARTEL
A distinction needs to be drawn between public and private cartels.
In the case of public cartels, the government may establish and enforce the rules relating to prices, output and other such matters...
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A Review of the Literature on the Topic of Market Orientation and the Firm with reference to three articles.
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