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To help you answer the question above, you should look at and read the following resources:
•Economic Insights – The Nature of Firms and Their Costs
•Theories of the Firm
•Neither Market nor Heirarchy: Network Forms of Organization
•Behavioural Economics as applied to firms
•Evidence From Australia, Ireland and the ECB
•Case Study F8
•Price-setting behaviour in the United Kingdom
•Five facts about prices: a reevaluation of menu cost models
•Are UK companies’ prices sticky? Some survey evidence for the United Kingdom