Price/Output Equilibrium. Osteopathic Devices, Inc., makes products used in the surgical replacement of degenerated bone material. During recent years, its unique hip joint replacement product has successfully exploited a small but profitable niche in the market. The company's monopoly position in this market niche is now threatened by a competitor's announcement of a new device with capabilities similar to those of the Osteopathic product.

Question

Quizplus · Accepted Answer

The Answer of Price/Output Equilibrium. Osteopathic Devices, Inc., makes products used in the surgical replacement of degenerated bone material. During recent years, its unique hip joint replacement product has successfully exploited a small but profitable niche in the market. The company's monopoly position in this market niche is now threatened by a competitor's announcement of a new device with capabilities similar to those of the Osteopathic product.