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In the presence of producer producer rivalry the price will tend to be ___.

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User Momodou
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1 Answer

3 votes

Answer:

The correct answer is letter "A": be driven to a lower price.

Step-by-step explanation:

Typically, when there is a producer to producer competition, the competing companies tend to lower their product prices. This happens because of the belief consumers are mainly price driven at the moment of discriminating in choosing to buy one good over another. Though, it allows consumers to at least have a couple of sources from where to choose at a fair price.

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User Duske
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