E) Andy is 2 times younger than his sister and his father is 25 years older than him. If the total of their ages is 53 years, wh
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Answer:
The profits for firma A and B will decrease.
Step-by-step explanation:
Oligopoly by definition "is a market structure with a small number of firms, none of which can keep the others from having significant influence. The concentration ratio measures the market share of the largest firms".
If the costs remain the same for both companies and both firms decrease the prices then we will have a decrease of profits, we can see this on the figure attached.
We have an equilibrium price (let's assume X) and when we decrease a price and we have the same level of output the area below the curve would be lower and then we will have less profits for both companies.
