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Firms, Types of market, Imperfect knowledge of products - Coggle Diagram

- - - - Strategic alliances / joint ventures
    - - Price leadership
      - Cartel
    - - Match price fall but not price increase
- - - - No pricing power
        
        price is stable
        
        No incentive to keep at a lower price since it can sell as many units of the good as it wants at the current price
        
        If price rises, all buyers will switch to other firms (perfect knowledge + homogenous product)
    - - Earn only normal profits in the long run
  - - - Lack willingness: perfect information
      - Lack ability: normal profits in the long run