Asked by courtney mitchell on Apr 30, 2024
Verified
A(n) ________ industry does not have price as a decision variable.
A) perfectly competitively
B) monopolistic
C) monopolistically competitive
D) oligopolistic
Decision Variable
A variable, often under the control of a decision-maker, which influences the outcome of an optimization problem.
- Appreciate the critical role of product differentiation in giving companies in monopolistically competitive domains control over their pricing to a certain degree.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
A
Explanation :
In a perfectly competitive industry, individual firms are price takers, meaning they accept the market price as given and do not have the ability to influence the price of their product. This is because there are many firms producing identical products, making the price determined by the overall market supply and demand.
Learning Objectives
- Appreciate the critical role of product differentiation in giving companies in monopolistically competitive domains control over their pricing to a certain degree.
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