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A firm claims on its website that it has been in the same location for over 50 years and has lower overhead than other firms because it bought the land 50 years ago when it was inexpensive. It also claims that it charges lower prices than competitors because of its lower overhead. Discuss the logic of these claims. From a short term perspective, the claim that lower overhead (from already owning the land) lowers the firm's prices is
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A firm claims on its website that it has been in the same location for over 50 years and has lower o...
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