What effect will new entrants have on the price of cds

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Reference no: EM131401881

Hundreds of music stores have been closing in the face of stagnant demand for CDs and new competitors-online music vendors and discount retailers.

a. How would price competition from these new sources cause a retail store to close?

b. In the long run, what effect will new entrants have on the price of CDs?

Reference no: EM131401881

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