As long as there is asymmetric information among consumers and positive search cost, if price is below the monopoly price and the same across all firms, then a competitive firm
A) can always profit from raising its price.
B) can always profit from lowering its price.
C) can profit from raising its price but by no more than the search cost.
D) can profit from lowering its price but by no more than the search cost.
C
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The short-run aggregate supply curve shifts because of changes in all of the following EXCEPT
A) the capital stock. B) technological progress. C) money wage rates. D) the price level.
If there is an excess supply of bonds at a given price of bonds, then
A) the interest rate will fall. B) the interest rate will rise. C) the price of bonds will fall. D) the interest rate may rise or the interest rate may fall depending upon the reasons for the excess demand for bonds.
Identify the externality that arises when basic research leads to new general knowledge. Is the externality positive or negative?
The value added of a producer is the
A. value of its total sales once externalities are accounted for. B. total amount for which all its products sell minus its change in inventories. C. quality-adjusted amount of its total sales less any commissions paid. D. value of its output minus the value of the inputs it purchases from other producers.