Scenario: There are several pen manufacturers in Corinthia. However, the pens sold by each manufacturer have a unique design.
-Refer to the scenario above.How will the demand for pens faced by the existing pen manufacturers in Corinthia be affected if several firms exit the industry in the long run?

Question

Quizplus · Accepted Answer

With fewer firms in the industry, the existing manufacturers will face less competition, leading to an increase in demand for their unique pens as consumers have fewer alternatives.

Scenario: There Are Several Pen Manufacturers in Corinthia