Suppose that the market for computers is dominated by a single firm, like Dell, that is able to exert influence over prices and

Question

Elden [556K]

3 years ago

13

Suppose that the market for computers is dominated by a single firm, like Dell, that is able to exert influence over prices and

output. This situation violates the perfect competition assumption of:________________.

Business

1 answer:

Salsk061 [2.6K] · Answer 1 · 2022-04-30T22:50:23+03:00

Answer:

many buyers and sellers

Explanation:

Based on the information provided within the question it can be said that this situation violates the perfect competition assumption of many buyers and sellers. This is a model that many buyers and sellers in a competitive market agree on a single market price, and that no individual has influence over the price. Therefore if a single company, like Dell in this scenario, is able to influence the price then it is violating this assumption.