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I'm dealing with "internal economies of scale". We are considering monopolistic competition as an example. We assumed that firms are symmetric: they face the same demand function and have the same cost function.

Why do firms falling in this situation, have different marginal cost functions? Why is it true that some are well performing and some are not?

User Margareth
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Answer:

The concept of Micro-Economics are the elasticity of demand, marginal costs, the ... firm. ME deals with Demand analysis, Forecasting, Production function, Cost ... same. Because this is the world of competition and it has to be faced with all the possible options. 5. ... When we consider the demand for a commodity by all the.

User Francesc VE
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