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Author Question: What are the major sources of risk for the firm? What will be an ideal ... (Read 48 times)

jilianpiloj

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on: Jul 1, 2018
What are the major sources of risk for the firm?
 
  What will be an ideal response?

Question 2

If consumers have limited information about price and search costs exist, then
 
  A) the result must be that all firms will charge the same price.
  B) the monopoly price must result.
  C) the full-information, competitive price is not an equilibrium.
  D) the difference in prices between firms will be greater than the search cost.


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wuly

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Reply #1 on: Jul 1, 2018
Answer to Question 1

Economic uncertainty, competition (actions of competitors), changes in demand, changes in technology, changes in input costs

Answer to Question 2

C


jilianpiloj

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Reply 2 on: Jul 1, 2018
YES! Correct, THANKS for helping me on my review

upturnedfurball

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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