Suppose an established manufacturer in an oligopoly market introduces 10 new varieties of products in the same year. Which of the following is a possible outcome of this action? Group of answer choices It will reduce the startup cost for a new entrant. It will lead to a decrease in the demand for the products of the manufacturer. It will lead to a fall in the profit earned by the firm. It will crowd out new entrants into the market. It will help the manufacturer increase the price of its products.
Suppose an established manufacturer in an oligopoly market introduces 10 new varieties of products in the same year. Which of the following is a possible outcome of this action? Group of answer choices It will reduce the startup cost for a new entrant. It will lead to a decrease in the demand for the products of the manufacturer. It will lead to a fall in the profit earned by the firm. It will crowd out new entrants into the market. It will help the manufacturer increase the price of its products.
Chapter10: Monopolistic Competition And Oligoply
Section: Chapter Questions
Problem 9SQP
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Question
Suppose an established manufacturer in an oligopoly market introduces 10 new varieties of products in the same year. Which of the following is a possible outcome of this action?
Group of answer choices
It will reduce the startup cost for a new entrant.
It will lead to a decrease in the demand for the products of the manufacturer.
It will lead to a fall in the profit earned by the firm.
It will crowd out new entrants into the market.
It will help the manufacturer increase the price of its products.
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