Eggs,which are standardized products,are sold within a city at higher prices than in the suburbs.Given that firms in the city are able to sustain the higher prices but do not make higher profits than firms in the suburbs,this means that:
A)the egg industry is a constant-cost industry.
B)the egg industry is not competitive as the prices of perfectly substitutable goods are different.
C)consumers do not have perfect information which leads to price differentials.
D)the convenience of buying eggs in the city weakens the homogeneous product assumption.

Question

Quizplus · Accepted Answer

The Answer of Eggs,which are standardized products,are sold within a city at higher prices than in the suburbs.Given that firms in the city are able to sustain the higher prices but do not make higher profits than firms in the suburbs,this means that:
A)the egg industry is a constant-cost industry.
B)the egg industry is not competitive as the prices of perfectly substitutable goods are different.
C)consumers do not have perfect information which leads to price differentials.
D)the convenience of buying eggs in the city weakens the homogeneous product assumption.

Eggs,which Are Standardized Products,are Sold Within a City at Higher