tacit collusion breaks down and prices collapse, the result is: a price war. formation of a cartel. price leadership. higher profits for the industry as a w

Because of producer–producer rivalry, the price will tend to   Multiple Choice   rise up to the maximum price the consumers are willing and able to pay.   be the same as the monopoly price.   be driven to a lower price.   be the same as the competitive price.

Macmillan Learning Please match the five forces that shape competition and profitability with each description. Firms must buy the inputs for a good. Others are attracted by potential economic profit. Dividing market share can cause pressure on price. Other goods could be used in place of this good. Can customers influence the price they pay for the good? Answer Bank threat from potential entrants competition from existing firms bargaining power of buyers competition from substitute goods bargaining power of suppliers

The firm ACME, Inc. operates in a competitive market because OACME, Inc. is one of a few firms and entry in this market is easy OACME, Inc. can influence the market price and sells a product different from other firms in the market OACME, Inc. is one of many firms selling the same product and, market entry is easy OACME, Inc. is one of many firms selling the same product and, market entry is blocked