Suppose an olligopoly consists of two firms firm

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Suppose an olligopoly consists of two firms Firm A lowers price and Firm B responds by lowering its price by the same amount. If averages costs and industry output remain the same, which of the following what will occur

profits of the two firms increase

profits of the firm will remain the same

they will decrease

barriers to entry will come tumbling down and new firms will enter

Reference no: EM13860261

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