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However in comparison to rest of the restaurants in the area each firm supplies a small part of the total hospitality industry output. As a result, each Asian restaurant has restricted market power to influence the price of its product. A monopolistically competitive firm's demand curve is highly elastic, permitting it to vary its price within a narrow range of prices. The other firms' products are very close substitutes. This is the case with the restaurants in the East End; they produce similar meals within a narrow price range of each other.
The Asian restaurants in Adelaide’s East End produce differentiated products...
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