In a duopoly,if one firm increases its price,then the other firm can
A) keep its price constant and thus increase its market share.
B) keep its price constant and thus decrease its market share.
C) increase its price and thus increase its market share.
D) decrease its price and thus decrease its market share.
E) keep its price constant and thus maintain a constant market share.

Question

Quizplus · Accepted Answer

In a duopoly, if one firm increases its price, the other firm can keep its price constant to attract customers from the first firm, thereby increasing its market share.

In a Duopoly,if One Firm Increases Its Price,then the Other