Asked by

Cozette Gatson
on Dec 12, 2024

verifed

Verified

As firms exit a competitive price-searcher market, profits of remaining firms

A) decline and product diversity in the market decreases.
B) decline and product diversity in the market increases.
C) rise and product diversity in the market decreases.
D) rise and product diversity in the market increases.

Competitive Price-searcher

A market participant who sets prices through active search and strategy, often in markets with some degree of product differentiation.

Product Diversity

The variation of products and services offered in a market to meet different customer needs and preferences.

Firms Exit

This occurs when businesses cease operations and leave a market, typically due to factors like unprofitability, competitive pressures, or changing market conditions.

  • Articulate the consequences of entry and exit on market equilibrium and company profitability in competitive price-searcher markets.
verifed

Verified Answer

RS
Richard StegallDec 13, 2024
Final Answer:
Get Full Answer