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

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Under producer-producer rivalry, firms are unable to sell the product at the maximum price consumers will pay due to competition among sellers. This means that if one firm tries to sell the product at a higher price, consumers can choose to buy from a competitor who offers the same product at a lower price. Therefore, firms are forced to lower their prices to stay competitive and attract consumers. Cost considerations and scarcity of resources may impact pricing decisions, but they are not directly related to producer-producer rivalry. Competition among buyers would also not affect the pricing decisions of firms.

Under Producer−producer Rivalry,individual Firms Want to Sell the Product at the Maximum