Question
Currently the market for domestic air travel in OzLand is a monopoly with Qanwings as the supplier. A new supplier, Cheap Flights, enters the market.
Currently the market for domestic air travel in OzLand is a monopoly with Qanwings as the supplier. A new supplier, Cheap Flights, enters the market. Suppliers in the market compete by simultaneously choosing the quantity of flights they will supply. Which of the following is most likely to occur after the entry of the new supplier to the market for domestic air travel?
a. The total quantity of flights will increase.
b. The total quantity of flights will not change.
c. The total quantity of flights will decrease.
d. It is not possible to say what will happen to the quantity of flights.
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