Read-on limited is the forerunner in manufacturing electronic comic books tablet and has a market share of 85%.It's main competitor, Cosmos Inc., had a similar product but can be used either for kids' literature or newspaper comic strips.As a result, Read-on limited has sufficient latitude in raising prices above its marginal cost.If Read-on raises its price from the existing level and consumers react by substituting to Cosmos, what would this reflect?

MCQs on major topics and theories in the field of Industrial Organization. Topics include: Market structure analysis and the strategic behaviors of competing firms, including (but not limited to) product differentiation, collusion, price discrimination, pricing strategy, non-price discrimination (i.e. advertising), horizontal mergers, vertical integration, and vertical restraints.