Select One Specific Theory or Model of Argument Covered in This

question 19

Essay

Select one specific theory or model of argument covered in this section and identify two limitations of the theory or model.

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Definitions:

Price-searcher

A market participant who determines the price of goods or services based on the level of demand and supply, often in imperfectly competitive markets.

Selling Additional Units

Involves the process and strategies of increasing sales by offering more units of a product to the market.

Contestable Markets

Markets where the entry and exit of firms are so easy that the market always remains competitive, ensuring that prices remain close to marginal costs.

Barriers To Entry

obstacles that make it difficult for new competitors to enter a market, including high startup costs, access to technology, and stringent regulations.