Assume there is a decrease in the number of substitutes for a good pro
Assume there is a decrease in the number of substitutes for a good produced by a profit-maximizing price-setting firm. All else constant, this would cause the firm’s ability to markup price above average cost to:
A) decrease.
B) stay the same.
C) increase.
D) cannot be determined with the information given.
ANSWER
C
Expert paper writers are just a few clicks away
Place an order in 3 easy steps. Takes less than 5 mins.