Which firm is more likely to lower its price

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Suppose we have an industry with two firms producing the same product. Firm A produces 90 units, while firm B produces 10 units. The price in the market is $100, and both firms have marginal costs of production of $50.What incentives do the two firms have to lower prices as a way of trying to get consumers to switch the firm they buy from? Which firm is more likely to lower its price?

Reference no: EM131109584

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