In each of the following possible circumstances, decide whether the effect will be to:
-The firms are not aggressive profit- maximisers.

Question

Quizplus · Accepted Answer

If firms are not aggressive profit-maximizers, they may be less inclined to push prices to the maximum level possible, which can both reduce the size of monopoly profits and prevent prices from being considerably above the competitive level. This is because their focus might not solely be on maximizing profits but could include other objectives such as customer satisfaction, environmental concerns, or long-term sustainability, leading to more moderate pricing strategies.

In Each of the Following Possible Circumstances, Decide Whether the Effect