The Competition Bureau in Canada wants to increase competition and reduce monopoly power. Thus it it worries about industry concentration in Canada. Let's assume that the Canadian halibut processing industry there are only two firms(duopoly). Under such a market structure, if one of the halibut processing firm increases its price, then the other firm in the halibut processing industry can:   keep the price of its processed halibut constant and thus increase its market share.   keep its price of its processed halibut constant and thus decrease its market share.   decrease its price of its processed halibut and thus decrease its market share.   try to achieve economies of scale.   increase its price of its processed halibut and thus increase its market share.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter15: Oligopoly And Strategic Behavior
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The Competition Bureau in Canada wants to increase competition and reduce monopoly power. Thus it it worries about industry concentration in Canada. Let's assume that the Canadian halibut processing industry there are only two firms(duopoly). Under such a market structure, if one of the halibut processing firm increases its price, then the other firm in the halibut processing industry can:

  •  
    keep the price of its processed halibut constant and thus increase its market share.
  •  
    keep its price of its processed halibut constant and thus decrease its market share.
  •  
    decrease its price of its processed halibut and thus decrease its market share.
  •  
    try to achieve economies of scale.
  •  
    increase its price of its processed halibut and thus increase its market share.
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