$$\begin{array}{l}
\begin{array} { l l r }
\text { Pool Sweeper } &\text { Output } &\text { Market share } \
\text { Producer }&\text { (Revenue) }&\text { (percent) }\
\hline \text { North Star } & \$ 20,000 &\_\_\_\_\_\
\text { Hurricane } & \$ 16,000 &\_\_\_\_\_\
\text { Blue Lagoon } & \$ 2,000 &\_\_\_\_\_\
\text { Clean Sweep } & \$ 2,000&\_\_\_\_\_\
\end{array}
\end{array}$$
Table 25.2 Refer to Table 25.2.Assume there are only four firms in the pool sweeper industry.If Clean Sweep manages to increase its sales to $3,000 per week at the current price and the size of the market does not change, the combined weekly sales of the three other firms will
A) Fall by $3,000 per week.
B) Also rise.
C) Not change.
D) Fall by less than $3,000 per week.

Question

$$\begin{array}{l}
\begin{array} { l l r } 
\text { Pool Sweeper } &\text { Output } &\text { Market share } \
\text { Producer }&\text { (Revenue) }&\text { (percent) }\
\hline \text { North Star } & \$ 20,000 &\_\_\_\_\_\
\text { Hurricane } & \$ 16,000 &\_\_\_\_\_\
\text { Blue Lagoon } & \$ 2,000 &\_\_\_\_\_\
\text { Clean Sweep } & \$ 2,000&\_\_\_\_\_\
\end{array}
\end{array}$$
Table 25.2 Refer to Table 25.2.Assume there are only four firms in the pool sweeper industry.If Clean Sweep manages to increase its sales to $3,000 per week at the current price and the size of the market does not change, the combined weekly sales of the three other firms will
A) Fall by $3,000 per week.
B) Also rise.
C) Not change.
D) Fall by less than $3,000 per week.

Quizplus · Accepted Answer

If Clean Sweep increases its sales by $3,000 per week, the total market size will remain the same. Therefore, the combined sales of the other three firms must fall by $3,000 per week in order to maintain market equilibrium.

Table 252 Refer to Table 25