Is it Smyth Industries to remain as a duopolist or engage in predatory price?
A)Engage in predatory pricing since $210 million is greater than $200 million.
B)Remain as a duopolist since $210 million is greater than $0.
C)Engage in predatory pricing since $1.05 billion is greater than $1 billion.
D)Remain as a duopolist since $210 million is greater than $100 million.

Question

Quizplus · Accepted Answer

Remaining as a duopolist is the best choice since Smyth Industries is already making sizable profits and maintaining their position as a duopolist will continue to provide them with significant returns. Engaging in predatory pricing may temporarily increase their market share, but it is a risky move that could harm their long-term profitability by leading to price wars and potential retaliation from their competitor. Therefore, the best option for Smyth Industries is to maintain their position as a duopolist.

Is It Smyth Industries to Remain as a Duopolist or Engage