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The graph (on the left) represents the increase in demand.
The graph above and off to the right represents the demand and marginal cost for a firm. In the retail market, they have control over the price at which they sell their products to consumers. In the article they state that the firms buy the pecans from wholesale markets for a small price, like eighty-five cents, and then they go off and sell the same pecans for $5.50. A decrease in the price causes a decrease in marginal cost.
Both the producers and the retailers would benefit from advertising their profit. The advertising increases consumer demand for the product...
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