A New Firm Enters a Market Which Is Initially Serviced

question 117

Multiple Choice

A new firm enters a market which is initially serviced by a Bertrand duopoly charging a price of $20.What will the new price be should the three firms co-exist after the entry?

• A)$25.
• B)$20.
• C)$15.
• D)none of the statements associated with this question are correct.

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Definitions:

Probability Density Function

A mathematical expression that defines the probability of a continuous random variable assuming a specific value.

Probability Density Function

A function that describes the likelihood of a continuous random variable to take on a particular value.

Inclusive

An approach or policy that ensures all individuals have equal access, opportunities, and rights without discrimination.

Continuous Distribution

A statistical function that describes the probabilities of the possible values of a continuous random variable.