In the Dominant Firm Model as Evidenced by the Production

In the dominant firm model as evidenced by the production of iPods by Apple,the entrance of the competitive fringe firms has what effect on the dominant firm?

A) Its price is lower, but it produces more output.
B) Its price is lower, and it produces less output.
C) Its price is the same, but it produces less output.
D) Its price is higher, but it produces more output.

Correct Answer:

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