When More Firms Enter into a Market That Was Previously

question 22

Multiple Choice

When more firms enter into a market that was previously characterized as a duopoly,it will

• A) be easier for firms in the market to form a successful cartel.
• B) be more difficult for firms in the market to form a successful cartel.
• C) be just as difficult for firms in the market to form a successful cartel as it was before the new firms entered.
• D) be impossible for firms in the market to form a successful cartel,whereas before the new firms entered,it would have been possible.
• E) still be impossible for firms in the market to form a successful cartel.

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Definitions:

Delegation

The act of assigning responsibility or authority from one person or group to another person or group.

Assignment

The transfer of rights, property, or obligations from one party to another. This broad term is used across various legal contexts, including in contracts and real estate.

Delegation

The act of transferring authority or responsibility from one individual or group to another while retaining overall accountability.

Valid Delegation

The legal transfer of authority from one party to another, where the delegating party retains the responsibility for the task.