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Assume a third supplier chooses to join the industry, pour enfants. what will happen as a result? assume there is free entry and exit in this market.

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If a third supplier chooses to join the industry then the demand will be divided which will result to a lower income of the 2 suppliers. Unless if the 2 suppliers are really strong suppliers which has already make a name, then the third supplier may not make a difference in the market. A surplus of the goods may also occur because another supplier joins

User Roshanpeter
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