Returning students face a higher cost of changing schools so their substitutes are relatively more expensive. This quiz is based on the information for a purely competitive company shown in the table below. Found by looking at TC at an output of 0. At a large university there are two bookstores. One is located on campus in the student center and the other is located just off campus.
Instructors inform both stores of their textbook choices.
Both stores carry new and used books for every class. It gives the profit for each bookstore from sales of this book. Explain your answer. This is an oligopoly with some product differentiation. We know it is an oligopoly because there are only two firms.