Suppose that two firms are competing on price. The firms produce identical goods, and the marginal cost of each firm is constant at $15. If one firm is charging a price of $18, the other firm should:
A) raise its price to $18.01.
B) charge $17.99.
C) also charge $18.
D) cut its output to raise the market price well above $18.
Correct Answer:
Verified
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