Table 14-1

-Refer to Table 14-1.The price and quantity relationship in the table is most likely faced by a firm in which type of market

Question

Table 14-1

-Refer to Table 14-1.The price and quantity relationship in the table is most likely faced by a firm in which type of market

Quizplus · Accepted Answer

The price and quantity relationship in the table is indicative of a competitive market, where the demand for the product is elastic (higher price leads to lower quantity demanded) and the marginal revenue curve lies below the demand curve. This is because in a competitive market, there are many buyers and sellers, and firms have limited market power to influence the price. In contrast, a monopoly would have a downward sloping demand curve, and the ability to set a higher price, while a concentrated market or strategic market may have some degree of pricing power, but not to the extent seen in the given table.

Table 14-1 -Refer to Table 14-1.The Price and Quantity Relationship in the Relationship