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Unformatted text preview: reduces its price the producer expects other competitors to introduce a similar price cut ; the market demand will increase but the share of the firm will remain unaltered . ii) If the firm raises the price then other competing firms will not follow the price rise . There will be a very small rise in demand but a significant reduction in the sales of the firm....
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This note was uploaded on 11/26/2011 for the course ECONOMIC ec 201 taught by Professor - during the Fall '10 term at Montgomery.
- Fall '10