In a nightclub, a single supplier of beverages can charge a price that exploits its position and the customers' willingness-to-pay. If many suppliers could offer their products on the same site:
A) The suppliers would collude to maintain an artificially high selling price to preserve their return
B) The customers would not change their level of consumption, leading to a decrease in the return for all suppliers
C) The existence of many suppliers would drive down prices to the cost of supplying these beverages (with the assumption that no collusion emerges)
D) The economic rent would significantly increase for all suppliers
Correct Answer:
Verified
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