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Suppose that in our simple beach economy, there are three lemonade stands instead of two. Each morning, the owners arrive in random order to set up on the beach. Given the assumptions in our model, does an equilibrium exist with all three stands clustered in the middle? describe your answer, and provide any additional clarifying assumptions you may wish to make.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M939788

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