Economics Q85

0. Engro is the price leader in its market. One of its competitors tries to gain market share by selling at a lower price set by Engro. The market share of Engro will most likely:

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Option : B
Explanation : As prices decrease, smaller firms will leave the market rather than sell below cost. The most likely scenario is that Engro (market leader) will decrease prices and its market share will increase.

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