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Question
When more firms enter into a market that was previously characterized as a duopoly, it will
a. be easier for firms in the market to form a successful cartel.
b. be more difficult for firms in the market to form a successful cartel.
c. be just as difficult for firms in the market to form a successful cartel as it was before the new firms entered.
d. be impossible for firms in the market to form a successful cartel, whereas before the new firms entered, it would have been possible.
e. still be impossible for firms in the market to form a successful cartel.
Answer
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