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.
Correct Answer:
Verified
Correct Answer:
Verified
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