Doesn't this come close to textbook discussions on perfect competition? Also, relate this to the long-term decision making problem of a firm when it does not have perfect foresight. Do you think Kwid will be able to recover its fixed costs of Rs.3000 crore on a new plant with its aggressive pricing strategy?
http://www.thehindubusinessline.com/companies/renault-launches-small-car-kwid-at-rs-26-lakh/article7684827.ece
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