Which of the Following Is True of a Duopoly with Differentiated

question 163

Multiple Choice

Which of the following is true of a duopoly with differentiated products?

• A) A firm loses all its customers when its rival lowers the price of its product.
• B) A firm does not lose all its customers when its rival lowers the price of its product.
• C) A firm faces a perfectly elastic demand curve.
• D) A firm faces a perfectly inelastic demand curve.

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