When sellers exit a market due to losses, the:
A)remaining sellers face reduced demand.
B)amount of market power in the market rises.
C)market demand holds steady.
D)market price falls.

Question

Quizplus · Accepted Answer

When sellers exit a market due to losses, the competition decreases, leading to an increase in market power for the remaining sellers. This is because there are fewer competitors, potentially allowing the remaining sellers to have more control over prices and market conditions.

When Sellers Exit a Market Due to Losses, The