In an industry in which there are several providers of a type of good, why can one business not charge much higher prices for th

Question

sp2606 [1]

3 years ago

15

In an industry in which there are several providers of a type of good, why can one business not charge much higher prices for th

eir goods?

History

1 answer:

Alla [95] · Answer 1 · 2022-04-11T07:25:42+03:00

Answer:

One business can't charge much higher prices for their goods because of supply and demand.

Explanation:

Since there are several providers the supply is wide, which means the demand is being accounted for. If a new business were to charge much higher prices for their goods it wouldn't be able to compete in an already overflowed market. To charge higher the business would have to offer a different type of goods, one that has a proper demand for the targeted prices.