I'maSolarPanelCo. manufactures and distributes solar panels in the US market. Two years ago, it had 5 US competitors, but government stimulus in the industry has encouraged 7 new US competitors to enter the market. In these circumstances, I'maSolarPanelCo.'s price for its output

Question

Quizplus · Accepted Answer

With the increase in competitors due to government stimulus, the market becomes more competitive, leading to prices being determined by the forces of demand and supply rather than by individual companies.