Thursday, March 31, 2011

Long Run in the Magazine Market

As we have seen, there has been both a decrease in the demand for advertising (and thus a decrease in advertising revenues) and a decrease in the demand for magazines (and thus a decrease in subscription revenues). This has lead to an exit in the magazine market - estimated to be over 350 in the first nine months of 2009. While the magazine market may not be perfectly competitive, it is consistent with the long-run implications that we talk about using perfectly competitive markets.

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