In the carrot scenario, Derek is able to find carrots at the price he wishes to pay because one competitor offers a lower price. That competitor is successful in making a sale and competition causes the consumer to keep looking until the desired price is found. Likewise in the computer scenario, Melissa still searches in a number of places for the desired computer. Competition again is driving the consumer action of shopping around. However, in this case, the consumer is unable to find the desired price and ultimately decides that since all competitors are asking the same price, this must be a fair market price. In that case Melissa wants the model she wants and is willing to pay a higher price for it, but only after exhausting all of her available options by checking out many competitor prices.
They lived in small hut-like homes. They were hunter-gatherers, so they would grow food and hunt animals surrounding them.
Answer:
FALSE
Explanation:
Government regulation is needed in almost every industry to prevent predatory practices that are harmful to the consumer, the environment, and the financial system. For example, regulation prevents firms from abusive pricing or cartels. From the firm's point of view, regulations represent a cost, since firms need to adapt to the conditions that the government imposes for companies in that sector. For example, companies that sell oil need to comply with environmental regulations. This generates costs for companies such as employee training, hiring attorneys to interpret legal rules, use of less environmentally harmful technologies during the oil exploration process, among others.
