[amp_mcq option1=”allows some products to be produced that would otherwise not be produced in the economy due to the fear of making losses” option2=”opens consumption possibilities to consumers that would otherwise not be inaccessible (or unaffordable), if a single price prevailed in the market” option3=”allows firms to make supernormal profits, which in turn allows them to sustain price wars when breaking into new markets” option4=”All of the above” correct=”option4″]<\/p>\n
The correct answer is D. All of the above.<\/p>\n
Price determination of ten favors public interest because it allows some products to be produced that would otherwise not be produced in the economy due to the fear of making losses. This is because firms are more likely to produce a product if they know that they can charge a price that will cover their costs and make a profit.<\/p>\n
Price determination of ten also opens consumption possibilities to consumers that would otherwise not be inaccessible (or unaffordable), if a single price prevailed in the market. This is because consumers are more likely to buy a product if they know that they can get it at a price that they are willing and able to pay.<\/p>\n
Finally, price determination of ten allows firms to make supernormal profits, which in turn allows them to sustain price wars when breaking into new markets. This is because firms that are making supernormal profits can afford to lower their prices in order to compete with other firms in a new market.<\/p>\n
In conclusion, price determination of ten favors public interest because it allows some products to be produced that would otherwise not be produced in the economy, it opens consumption possibilities to consumers, and it allows firms to make supernormal profits.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”allows some products to be produced that would otherwise not be produced in the economy due to the fear of making losses” option2=”opens consumption possibilities to consumers that would otherwise not be inaccessible (or unaffordable), if a single price prevailed in the market” option3=”allows firms to make supernormal profits, which in turn allows them … <\/p>\n