A New Firm Enters a Market Which Is Initially Serviced

question 31

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 coexist after the entry?

• A) $25
• B) $20
• C) $15
• D) None of the answers is correct.

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Definitions:

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A medical checkup that potential employees must undergo to ensure they are fit for the job they are applying for.