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Why might such a guarantee lead to higher prices

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Reference no: EM132187653

Two firm in town sell yarn. Both advertise that they will beat their competitor's price. Why might such a guarantee lead to higher prices?

Reference no: EM132187653

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Why might such a guarantee lead to higher prices : Two firm in town sell yarn. Both advertise that they will beat their competitor's price. Why might such a guarantee lead to higher prices?
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