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.

---

Definitions:

Text Align

A property in text formatting that determines the horizontal alignment of text within a document or a container, such as left, right, center, or justified.

Control Layout

The arrangement and organization of interactive elements and controls within a user interface or application.

Form Design View

The mode in database management systems where users can design and edit the layout and functionality of forms used for data entry and display.

Date Control

A graphical interface element that allows users to input or select dates, typically through a calendar popup.