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NEW QUESTION: 1
According to Bruce Henderson, competitive equilibrium is most likely to be stable when:
A. One major factor is the critical factor.
B. The product is undifferentiated.
C. One competitor has twice the market share of a second competitor.
D. Competitors are almost identical.
Bruce Henderson has analyzed firms' reaction patterns when confronted with competitive attacks. A key to the analysis is competitive equilibrium. When one competitor hasapproximately twice the market share of a second competitor, equilibrium exists. The costs of gaining market share outweigh the benefits to either party.
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