Consumers don't care which supplier they buy from in a perfectly competitive market because:
A) the outputs of the firms in a perfectly competitive market are all the same.
B) the consumers have no choice regarding who they buy from.
C) price is always low enough that the choice of supplier doesn't matter.
D) all of the above.
A
You might also like to view...
When the product demand is inelastic, labor demand is
a. low b. high c. elastic d. inelastic e. nonunion
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.Assume that Joe and Sarah, from the figure shown, are also dating, in addition to working together on the joint school project. Further assume that Joe is madly in love with Sarah, who is an excellent student. Sarah tells Joe that she will break up with
him if he does not put forth high effort on this project. This future punishment by Sarah is an example of: A. an ultimatum. B. an effort optimization strategy. C. a bargaining strategy. D. a commitment strategy.