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:

Physiological

pertains to the functions and processes that occur within living organisms to sustain life, including biochemical and physical activities.

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Relating to society or its organization, including interactions and relationships among individuals.

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Mental activities involved in acquiring, storing, retrieving, and using information, such as perception, learning, memory, and reasoning.