A New Firm Enters a Market Which Is Initially Serviced

question 68

Multiple Choice

A new firm enters a market which is initially serviced by a Bertrand duopoly charging a price of $30.Assuming that the new firm is equally as efficient as the incumbent firms,what will the new price be should the three firms coexist after the entry?

• A) Above $30
• B) Below $30
• C) Equal to $30
• D) Unable to tell given the information provided.

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Definitions:

Peer Relations

Refers to the relationships that individuals have with their equals, such as friends, classmates, and colleagues, and how they interact within these relationships.

Positive Effects

Favorable outcomes or benefits that arise from a particular action or situation.

Negative Effects

Adverse outcomes or detrimental impacts resulting from an action, condition, or situation.

Sibling Relationships

The dynamic interpersonal bonds between brothers and sisters, influenced by factors such as birth order, personality, and family environment.