If a producer has market power?

(can influence the price of the product in the market) then free market solutions

a. are equitable.
b. are inefficient.
c. are efficient.
d. maximize consumer surplus.

2007-03-22 15:31:54 · 1 answers · asked by investing1987 3 in Education & Reference ➔ Homework Help

1 answers

b. are inefficient.

Think monopoly for extreme market power

2007-03-22 16:48:05 · answer #1 · answered by JuanB 7 · 0⤊ 0⤋

fedest.com, questions and answers