When a Third Firm Enters a Market That Was Previously

question 88

Multiple Choice

When a third firm enters a market that was previously categorized as a duopoly,the equilibrium price will ________ and the equilibrium quantity will ________.

• A) be lower; be lower
• B) be higher; be lower
• C) be lower; be higher
• D) be higher; be higher
• E) not change; not change

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Definitions:

Drum Brakes

A type of brake that uses friction caused by a set of shoes or pads that press outward against a rotating cylinder-shaped part called a drum.

Brake Fade

The reduction in braking power that occurs after repeated or sustained use, often due to overheating of the brake components.

Hydraulic

Relating to a system operated by the motion and pressure of fluids, used in various applications including machinery and vehicle brakes.

Integral

Essential or necessary for completeness; often used to describe parts that are built as a single unit.