Silverado sets price in the market

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Question

Suppose that the market is NOT perfectly competitive. Instead, Silverado sets a price in the market. The 4 remaining (typical) firms will assume that demand for their silver is perfectly elastic at the price set by Silverado (i.e. they are perfectly competitive). Silverado will sell the qunatity to keep the price in the market at the announced price.

Reference no: EM133637279

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