Business, 28.07.2019 07:00 mathhelper22
Ahigh-school student, mows lawns for families in his neighborhood. the going rate is $12 for each lawn-mowing service. would like to charge $20 because he believes he has more experience mowing lawns than the many other teenagers who also offer the same service. if the market for lawn mowing services is perfectly competitive, what would happen if raised his price? if kyle raises his price, then all others supplying the same service will also raise their prices. initially, his customers might complain but over time they will come to accept the new rate. he would lose some but not all of his customers. if kyle raises his price he will lose all of his customers.
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