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Consider the pizza restaurants and explain the following issues. What is the type of market that this industry represents? Explain the concentration of the industry. Explain the relationship between the elasticity of the industry demand and that of an individual firm. Explain the pricing behavior of the firms in this industry. Explain the effect of a horizontal integration of all the firms in the industry on the pricing behavior of the merger. Given the merger in point 5, explain the changes in the concentration of the industry. Given the merger in point 5, explain the relationship between the elasticity of the industry demand and that of the firm. Given the merger in point 5, explain how entry into the industry is affected. Explain the value of the Lerner index for the competitive market. Explain why the competitive market has a very low concentration.
May 15 2020 View more View Less
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