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Essential Question
How does competition affect markets? > How does
the level and intensity of competition affect markets for goods and
services? Suppose you walked into a store selling running shoes under
each of the following conditions. For each example, briefly describe the
variety and quantity of running shoes you would expect to find and the
prices of the shoes.
• This store is one of eight independent stores selling running shoes in
the city.
• This store is one of three stores selling running shoes in the city, but
all three owners secretly work together to increase their profits.
• This store is the only one selling running shoes in the entire city.
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How does competition affect markets? > How does
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