Scenario 18-1
Gertrude Kelp owns three boats that participate in commercial fishing for fresh Pacific salmon off the coast of Alaska. As part of her business she hires a captain and several crew members for each boat. In the market for fresh Pacific salmon, there are thousands of firms like Gertrude's. While Gertrude usually catches a significant number of fish each year, her contribution to the entire harvest of salmon is negligible relative to the size of the market.
-Refer to Scenario 18-1.Based on the given information,it is likely that Gertrude's firm has
A) some influence over the wages paid to crew members but no influence over the price of salmon.
B) some influence over the price of salmon but no influence over the wages paid to crew members.
C) some influence over both the price of salmon and the wages paid to crew members.
D) no influence over either the price of salmon or the wages paid to crew members.
Correct Answer:
Verified
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