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A new competitor enters the industry and competes with a second firm, which had been a monopolist. The second firm finds that although demand is
A new competitor enters the industry and competes with a second firm, which had been a monopolist. The second firm finds that although demand is not perfectly elastic, it is now relatively more elastic. The second firm's marginal revenue will be _____________ and its profit-maximizing price will be ___________ Part 2 A. more elastic; lower. B. less elastic; higher. C. perfectly elastic; the same. D. perfectly inelastic; higher
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