Which of the following statements regarding the seller's price is MOST ACCURATE?
A)Internet price changes are regulated by the Internet Fair Practices Act to protect consumers against price gouging.
B)The seller's price is constrained by the type of market within which it competes.
C)Price changes cannot be regulated in a monopoly.
D)The type of market has little or no impact on a firm in a monopolistic competitive environment.
E)Competitive environments should affect a firm's pricing objectives,but not its actual product prices.

Question

Quizplus · Accepted Answer

The seller's price is constrained by the type of market within which it competes. In a perfect competition market, firms must accept the market price, while in other market structures such as monopolistic competition, oligopoly, and monopoly, the seller has some control over the price they charge. Therefore, the type of market and level of competition will determine the extent to which a seller can set their price. None of the other options accurately describe the seller's price dynamic.

Which of the Following Statements Regarding the Seller's Price Is