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Commerce · Q1154

Economics

Graduate and Post Graduate · Commerce · question 1154

Q1154

Price determination of ten favours public interest because it

A.
allows some products to be produced that would otherwise not be produced in the economy due to the fear of making losses
B.
opens consumption possibilities to consumers that would otherwise not be inaccessible (or unaffordable), if a single price prevailed in the market
C.
allows firms to make supernormal profits, which in turn allows them to sustain price wars when breaking into new markets
D.
All of the above
Answer

Answer: Option D

Solution

Answer: Option D
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