If a Consumer Changes Suppliers, They Are Faced with

question 104

Multiple Choice

If a consumer changes suppliers, they are faced with

• A) switching costs.
• B) increased global competition.
• C) supply chain management.
• D) unforeseen logistics.
• E) observational inadequacy.

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Definitions:

Increasing Returns

A situation where the input in a production process is increased and the output increases at a proportionally higher rate.

Price Discrimination

Charging different prices to different consumers for the same good.

Price Fixing

An illegal agreement among competitors to set, raise, or lower prices to predetermined levels, thereby undermining free market competition.

Deadweight Loss

A loss in economic efficiency that can occur when equilibrium for a good or service is not achieved or is not achievable.