A New Firm Enters a Market Which Is Initially Serviced

question 82

Multiple Choice

A new firm enters a market which is initially serviced by a Cournot duopoly charging a price of $10.What will the new market price be should the three firms coexist after the entry?

• A) $10
• B) Below $10
• C) Above $10
• D) None of the preceding answers is correct.

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Definitions:

Native Japanese Subjects

Refers to the indigenous people of Japan and their societal roles, cultures, and histories prior to extensive foreign influence.

Supply-of-loanable-funds

The availability of funds for borrowing, influenced by savings and influenced by interest rates in the financial market.

Demand-for-loanable-funds

The desire or willingness of consumers and businesses to borrow money at given interest rates, often depicted in economics as a curve.

Budget Deficit

occurs when a government's expenditures exceed its revenues during a specific period, leading to borrowing or debt accumulation.