In a country where competition is limited,
A) prices will be low.
B) there will be low elasticity of demand.
C) prices will be high.
D) consumers' bargaining power rises.

Question

Quizplus · Accepted Answer

When competitors are limited, consumers' bargaining power is weaker and price is less important as a competitive weapon. Thus, a firm may charge a higher price for its product in a country where competition is limited than in one where competition is intense.

In a Country Where Competition Is Limited