If the input costs rise for the dominant firm, how this affect the price charged by...
If the input costs rise for the dominant firm, how this affect the price charged by the dominant firm?
A Increase in price
B Price stays constant
C Decrease in price
Homework Answers
Option A.
- Dominant firms hold market power to influence the price's with respect to the changes in input costs.
- These firms hold power to raise the prices when their production costs Increases without loosing their customers.
- If the input costs rises for the dominant firm, the dominant firm will charge a greater price for its products.
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