question archive Suppose the price you are willing to pay for a new car is greater than the marginal cost of producing that new car
Suppose the price you are willing to pay for a new car is greater than the marginal cost of producing that new car
Subject:MarketingPrice:2.88 Bought3
Suppose the price you are willing to pay for a new car is greater than the marginal cost of producing that new car. Under which market structure could you be most confident that you would be able to buy that new car?
a) Perfect Competition
b) Monopolistic competition
c) Oligopoly
d) Monopoly
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c) Oligopoly
The companies which produce cars are not large in numbers. These companies also consist of huge investments in the settlement of those companies. Also, the companies charge the prices which exhibit greater value relative to the marginal costs of producing those cars. As a result, this scenario is reflected in the oligopolistic form of market.
