Home market engaged in perfect competition

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Reference no: EM132281206

We know from microeconomics that a former monopolist still has market power if it faces just a few competitors. Yet Feenstra claims that allowing just one Foreign monopolist into a Home market to face one Home monopolist creates a Home market engaged in perfect competition, rather than an oligopoly. Do you agree or disagree with this concept? Why?

Reference no: EM132281206

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