Price competition with identical products across producers leads to _____ because _____.
A)a high price; sellers are competing to sell at a high price
B)high profits; more consumers enter the market
C)a low price; consumers choose a seller based on price
D)low profits; more consumers enter the market

Question

Quizplus · Accepted Answer

When there is price competition with identical products across producers, consumers tend to choose the product with the lowest price. This puts pressure on producers to lower their prices to remain competitive, ultimately resulting in a low price for the product.

Price Competition with Identical Products Across Producers Leads to _____