Explore BrainMass
Share

Explore BrainMass

    Effects of sudden increase or decrease in # of competitors

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Based on the computer industry what are the positive and negative effects of either a sudden increase or decrease in the number of competitors on prices in the long run.

    What would you recommend as a course of action, if any, and how would price moves from today to the future?

    © BrainMass Inc. brainmass.com May 20, 2020, 8:34 pm ad1c9bdddf
    https://brainmass.com/economics/economic-development/effects-sudden-increase-decrease-competitors-406352

    Solution Preview

    Lets assume that there is a sudden increase in the number of competitors in the computer industry.

    Positive effects:
    -An increase in the number of competitors would mean that more computers would be supplied in the market. As the supply of computers increase, price of computers would go down.
    -Another positive effect ...

    Solution Summary

    The solution discusses how would price moves from today to the future and what to recommend for this course of action.

    $2.19

    ADVERTISEMENT