Q1 competition in quality and service may be just as

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Q1. Competition in quality and service may be just as effective as price competition in giving buyers more for their money." Do you agree? Why or why not? Explain why monopolistically competitive firms frequently prefer nonprice competition to price competition?

Q2. Rashid is a frequent flier with a major airline. His fare is reduced by 25 percent after he flies 30 000 km per year and then to 50 percent after he flies 60 000 km per year. Draw Rashid's budget constraint.

Reference no: EM13352689

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