​In the Problem of Double Marginalization,the Resulting Price Is ______Than

question 41

Multiple Choice

​In the problem of double marginalization,the resulting price is ______than if the manufacturer were to sell directly to the consumer

• A)​Higher
• B)Lower
• C)The same
• D)​None of the above

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Definitions:

Markets

Venues or systems where buyers and sellers engage in the exchange of goods, services, and information.

Constant Marginal Cost

A situation where the cost of producing an additional unit of output does not change with the level of production.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price, with higher elasticity indicating a greater responsiveness.

Profit-Maximizing Price

The optimal selling price for a product or service that leads to the highest possible profits for the producer or seller.