The competitive fringe firms in the market, the ______ the markup and the______ the profit for the dominant firm.

Name: The competitive fringe firms in the market, the ______ the markup and the______ the profit for the dominant firm.
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Question

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When there are more competitive fringe firms in the market, it increases competition, which typically leads to a lower markup for the dominant firm as it faces more price competition. Consequently, with a lower markup, the dominant firm's profit is also lower.

The Competitive Fringe Firms in the Market, the ______ the Markup