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- Is there perfect competition in the food delivery market? Why and How?Exercise 3.5. Pablo, Dirk and Franz run the only bar in town. Pablo wants to sell as many drinks as possible without losing money. Dirk wants the bar to bring in as much revenue as possible. Franz wants to make the largest possible profits. Using a single diagram of the bar's demand curve and its cost curves, show the price and quantity combinations favoured by each of the three partners. Explain.Information about Competitive market
- The Roadrunner farm, Wheeler’s one of competitors, reports that at their profit maximizing output, the price is below average variable cost. What would you advise?Generic strategy is a combination of competitive strategy and competitive scope in Broad and Narrow segments. Discuss when a company should employ a STUCK IN THE MIDDLE STRATEGYTomas is the general manager for a local automated car wash. The market he operates is perfectly competitive. Every car wash in the area is charging $7 for a car wash, which is also the marginal cost per wash. What will happen to Tomas’ profits if he changes his price to $8. Why? What about the price of $5? What is his profit-maximizing price?