Suppose an established manufacturer in an oligopoly market introduces 10 new varieties of products in the same year.Which of the following is a possible outcome of this action?
A) It will lead to a fall in the profit earned by the firm.
B) It will crowd out new entrants into the market.
C) It will reduce the startup cost for a new entrant.
D) It will help the manufacturer increase the price of its products.
E) It will lead to a decrease in the demand for the products of the manufacturer.
Correct Answer:
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B)charge
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