Based on Bresnahan and Reiss' study of the relationship between concentration and prices,how many firms did they determine generally need to be in a market for price competition to be as intense as it would likely get?

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Quizplus · Accepted Answer

Bresnahan and Reiss found that a market with three or more firms tends to have intense price competition, while a market with only one or two firms will likely result in higher prices due to a lack of competition. Therefore, three firms is the minimum number needed for significant price competition.

Based on Bresnahan and Reiss' Study of the Relationship Between