Under producer-producer rivalry, individual firms want to sell the product at the maximum price consumers will pay, but are unable to do this because of:

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Producer-producer rivalry involves competition among sellers, meaning that individual firms are unable to sell their products at the maximum price consumers will pay due to competition from other sellers. Cost considerations and scarcity of resources may limit a firm's ability to produce a product, but they do not directly impact a firm's pricing strategy. Competition among buyers is not a factor in producer-producer rivalry.

Under Producer-Producer Rivalry, Individual Firms Want to Sell the Product