Which of the following industries is expected to charge the most competitive price and a price...
Which of the following industries is expected to charge the most competitive price and a price that is closest to the lowest average total cost?
A large monopoly with few competitors.
An oligopoly firm, which has agreed to form a cartel with its competitors.
A large steel company, which faces government protection from foreign companies.
A monopoly, which is government granted and whose prices are regulated by law.
A small business selling products over the internet.
Homework Answers
A small business selling products over the internet.
Explanation: A small business selling products over the internet faces competition which is very near to perfect competition because there are many other firms and no firm enjoys a significant market share. Therefore, this firm is a price taker and is most likely to charge a competitive price.
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