Answer to Question #75534 in Accounting for wils

Question

define and explain when the presence of a backstop competitive supplier leaves hotelling industry extraction largely unchanged and when such a bacckstop changes hotelling extraction considerably

Answer 1

The presence of a backstop competitive supplier leaves hotelling industry extraction largely unchanged or changes hotelling extraction considerably according to such different factors as pricing strategy, importance of its goods or services supplied, number of suppliers in the market etc.