Which of the following will happen if a new firm enters in an oligopoly with differentiated products?
A) Market price will fall.
B) Market price will rise.
C) Existing firms will gain market share.
D) Each firm will have an equal market share.
A
Economics
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A U.S. company that wishes to sell more to other countries would favor
A) an appreciation of the dollar. B) a depreciation of the dollar. C) neither an appreciation nor a depreciation of the dollar. D) higher interest rates.
Economics
The table above shows the demand and costs for a single-price monopolist. The firm will
A) maximize profit by producing 3 units. B) maximize profit by producing 2 units. C) operate on the inelastic portion of its demand curve. D) operate on the unit elastic portion of its demand curve.
Economics