Asked by
DeJon Cotton
on Dec 11, 2024Verified
Relative to a competitive situation, if a market lacks competition, economic theory suggests that
A) output will be lower and price higher.
B) output will be higher and price lower.
C) both output and price will be higher.
D) both output and price will be lower.
Economic Theory
A set of principles and concepts that helps to explain economic behavior and predict future patterns.
Competitive Situation
A market scenario in which multiple businesses offer similar products or services and compete for the same customers.
Lacks Competition
Lacking competition refers to market situations where limited or no rival firms exist, often leading to less favorable outcomes for consumers.
- Comprehend the notion of market competition and its influence on productivity and efficiency.
Verified Answer
SH
Learning Objectives
- Comprehend the notion of market competition and its influence on productivity and efficiency.