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Homework answers / question archive / A new firm enters a market that is initially serviced by a Cournot duopoly charging a price of $20

A new firm enters a market that is initially serviced by a Cournot duopoly charging a price of $20

Marketing

A new firm enters a market that is initially serviced by a Cournot duopoly charging a price of $20. What will the new market price be should the three firms coexist after the entry?

A. $20

B. Above $20

C. Below $20

D. None of the preceding answers is correct.

Option 1

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