The figure given below represents an imperfectly competitive resource market. Here common land (and not land used for specific purpose) is under consideration.Figure 18.1

-A fisherman will catch and sell all the fishes in his pond in response to a substantial increase in the price of the fish even if he wishes to remain in the fishing business.

Question

The figure given below represents an imperfectly competitive resource market. Here common land (and not land used for specific purpose) is under consideration.Figure 18.1
 
-A fisherman will catch and sell all the fishes in his pond in response to a substantial increase in the price of the fish even if he wishes to remain in the fishing business.

Quizplus · Accepted Answer

Since this is an imperfectly competitive market, the fisherman may not necessarily catch and sell all the fishes in his pond in response to a price increase. There could be other factors such as limited capacity or resource constraints that could prevent the fisherman from increasing his output.

The Figure Given Below Represents an Imperfectly Competitive Resource Market