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I would like to write down a model where there are firms with different demand elasticities: For some firm's total profits increase and decrease a lot with increases and decreases in demand for their product. Others can change supply or costs in a way that changes in demand don't change profits as much. Is there a simple way to write a model with those features?

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  • $\begingroup$ What kind of market is this exactly? Doesn't look like perfect comp. $\endgroup$
    – Kitsune Cavalry ♦
    Commented Mar 13, 2016 at 2:04

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