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9. Consider the situation of an oligopoly firm that manufactures and sells laser printers ink cartridges. Assume that there are only four firms {Firm A,

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9. Consider the situation of an oligopoly firm that manufactures and sells laser printers ink cartridges. Assume that there are only four firms {Firm A, B, C, and D) of this nature in Toronto. They are all selling the standard replacement cartridges for $20 each. Assume that Firm D decides to sell the cartridge for $25. This will impact the market in a number of ways. Which of the following is correct? A) The sale of Firm D's cartridge will increase as consumers will believe that D's cartridges are of better quality B) Firms A, B and C will raise the price to $25 C) Firms A, B and C will lower their price to take advantage of the change in D's price D) Firms A, B and C will not raise their price and their share of the market will increase

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