Consider the concept of maximizing the number of competitors and letting price be determined by "what...
Consider the concept of maximizing the number of competitors and letting price be determined by "what the market will bear." How do you interpret this statement? What is a good example of this at play?
Homework Answers
The above scenario can be best described by the perfect competition.
because in the perfect competition there is a large number of buyers and sellers in the market.
So the price is decided not to buy them but by the market forces that is demand and supply in the market.
the above statement also says that the cost that the market will bear.
The main reason for this is that the product is homogeneous in nature that is there in the same shape, size,colour, etc
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Consider the concept of maximizing the number of competitors and
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