Leonardo owns a semiconductor factory. Under which of the following conditions would he face the most intense level of competition in his semiconductor market?
A)There are 12 sellers in the market, each producing its own type of semiconductor.
B)There are 12 sellers in the market, each producing identical semiconductors.
C)There are 1,400 sellers in the market, each producing its own type of semiconductor.
D)There are 1,400 sellers in the market, each producing identical semiconductors.

Question

Quizplus · Accepted Answer

In a market with 1,400 sellers producing identical semiconductors, Leonardo would face intense competition due to the large number of competitors producing the same product. This would lead to price competition and potentially a reduction in profit margins. Therefore, D is the best choice.

Leonardo Owns a Semiconductor Factory