Suppose that the market for computers is dominated by a single firm, like Dell, that is able to exert influence over prices and output. This situation violates the perfect competition assumption of:
A) many buyers and sellers.
B) easy entry and exit.
C) complete information.
D) no discrimination.

Question

Quizplus · Accepted Answer

The assumption of many buyers and sellers is violated in this scenario, as there is only one dominant firm in the market.

Suppose That the Market for Computers Is Dominated by a Single