Discrepancies of Assortment Happen When

question 395

Multiple Choice

Discrepancies of assortment happen when

• A) producers prefer to produce and sell in large numbers, but consumers prefer to buy and consume in smaller numbers.
• B) consumers may not want to consume goods and services at the time producers would prefer to produce them.
• C) consumers value goods and services in terms of costs and competitive prices whereas producers value them in terms of satisfying needs and ability to pay.
• D) producers specialize in producing a narrow range of goods and services but consumers need a wide variety.
• E) producers hold title to goods and services that they themselves do not want to consume.

---

Definitions:

Monopolistic Competitors

Firms that have many competitors but distinguish themselves through product differentiation, allowing them some control over their prices.

Average Total Cost Curves

A graphical representation showing the average cost per unit of output at different levels of production.

Monopolistic Competitor

A firm operating in a market with many competitors but differentiating its product or services from others, thus having some degree of market power.

Price Discrimination

A strategy where a company sells the same product at different prices to different customers, not based on costs but typically on willingness or ability to pay.