La Dila and Swiss Pro are the only two firms in an industry.The firms initially charge equal prices for their products,which are perfect substitutes.What happens if La Dila decides to lower its price slightly?
A) La Dila will lose all its market share.
B) Swiss Pro will gain market share.
C) La Dila will face the entire market demand.
D) Swiss Pro will earn positive economic profits.
Correct Answer:
Verified
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