127k views
2 votes
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.

1 Answer

3 votes

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
by
7.7k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories