Table 25.2 $$\begin{array} { | l | r | c | }
\hline{ \text { Pool Sweeper } } & \text { Output (Revenue) } & \text { Market Share (\%) } \
\hline \text { North Star } & \$ 20,000 & \
\hline \text { Hurricarne } & \$ 16,000 & \
\hline \text { Blue Lagoon } & \$ 2,000 & \
\hline \text { Clean Sweep } & \$ 2,000 & \
\hline
\end{array}$$ Refer to Table 25.2.Assume there are only four firms in the pool sweeper industry.If Clean Sweep manages to increase its sales to $3,000 per week at the current price and the size of the market does not change,the combined weekly sales of the three other firms will
A)Fall by $3,000 per week.
B)Also rise.
C)Not change.
D)Fall by less than $3,000 per week.

Question

Table 25.2 $$\begin{array} { | l | r | c | } 
\hline{ \text { Pool Sweeper } } & \text { Output (Revenue) } & \text { Market Share (\%) } \
\hline \text { North Star } & \$ 20,000 & \
\hline \text { Hurricarne } & \$ 16,000 & \
\hline \text { Blue Lagoon } & \$ 2,000 & \
\hline \text { Clean Sweep } & \$ 2,000 & \
\hline
\end{array}$$ Refer to Table 25.2.Assume there are only four firms in the pool sweeper industry.If Clean Sweep manages to increase its sales to $3,000 per week at the current price and the size of the market does not change,the combined weekly sales of the three other firms will
A)Fall by $3,000 per week.
B)Also rise.
C)Not change.
D)Fall by less than $3,000 per week.

Quizplus · Accepted Answer

If Clean Sweep increases its sales by $1,000 per week, the combined sales of the other three firms must fall by $1,000 per week in order to keep the total market size constant.

Table 252 Refer to Table 25