Noh, Yong-hwan (contributor); … - 2005
higher variable cost. In such a
setting, no particular variety guarantees higher profits, and although firms want to … cost. If an entrant entered the market with the
same quality as the existing variety, undifferentiated Bertrand competition … more variety.
The following proposition summarizes how consumer surplus varies across fixed costs.
Proposition 2. (i) The …