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1A) No matter how many soft drinks you buy, you have no effect on the price...

1A) No matter how many soft drinks you buy, you have no effect on the price of soft drinks. The soft drink industry includes two very large producers and several smaller ones. Is this industry perfectly competitive? Explain your answer.

1B) How does a perfectly competitive firm’s price compare to its marginal revenue? How does its demand curve compare to its marginal revenue curve?

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