Because of producer−producer rivalry,the price will tend to:
A) be driven to a lower price.
B) rise up to the maximum price the consumers are willing and able to pay.
C) be the same as the competitive price.
D) be the same as the monopoly price.

Question

Quizplus · Accepted Answer

Producer-Producer rivalry implies that each producer tries to offer the best price for consumers to increase their market share, which leads to competition and lower prices in the market. As a result, the price will tend to be driven to a lower price.

Because of Producer−producer Rivalry,the Price Will Tend To