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Why would any firm pay another firm so much money to not produce?

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Why would any firm pay another firm so much money to not produce? What do you think can be the benefits or ramifications of doing so?

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Solution Summary

This solution helps explain why firms would pay other firms to not produce, as well as the benefits and ramifications of such actions.

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A company is willing to pay another to not produce so the paying company can keep supply level artificial. This means that in exchange of ...

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