New study reveals how firms thrive in imperfect markets, impacting economy.
The article explores how firms behave in markets that are not perfect. Instead of assuming perfect competition, the researchers look at how firms make decisions when markets for both their products and the resources they need are imperfect. They found that under these conditions, firms can determine the best size, production factors, prices, and how taxes affect them. This approach helps understand how real-world market imperfections impact firms' strategies.