When a Third Firm Enters a Market That Was Previously

question 46

Multiple Choice

When a third firm enters a market that was previously categorized as a duopoly, the equilibrium price:

• A) will be lower and the equilibrium quantity will be lower.
• B) will be higher and the equilibrium quantity will be lower.
• C) will be lower and the equilibrium quantity will be higher.
• D) will be higher and the equilibrium quantity will be higher.
• E) and the equilibrium quantity will not change.

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Definitions:

Sales Ratio

A measure comparing two sales figures or quantities to evaluate performance, trends, or relationships.

Recorded Sales

The total sales transactions documented within a given period, typically used for financial and inventory tracking.

Ratio of Goals

A quantitative relationship between achieved goals and targeted goals, often used in performance measurement.

Assists

Contributions or help provided to achieve a goal, often used in sports or collaborative projects.