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However, the true reason for doing so is to distinguish each market structure from the other to truly understand how a firm makes it pricing and supply decisions, and how these decisions affect the firm in both the short and long run.
For the paper, I decided to look at Imperial Cafeteria and Take Away as a possible base for discussions. It is a monopolistically competitive firm because: 1.) they share the market with many other firms, 2.) they advertise highly on radio as well as on television, 3.) their products are similar to others in the market, but is differentiated when considering service, quality and location, and 4...
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