32.7k views
0 votes
The traditional view of competitive price-searcher markets holds that this type of market structure is inefficient because

User Elon Than
by
5.0k points

1 Answer

4 votes

answer: check explanation

Explanation:

Price searcher market are firms with some control over price, and some product differentiation.

Price searchers face a downward-sloping demand curve

The traditional view of price searcher market which holds that the market is inefficient is that;

(1). There are too few firms to reach an efficient level of competition, therefore,

excessive advertising is encouraged.

(2). Also, consumers are not allowed a sufficient amount of choice in which to express their individual preferences therefore, excessive advertising is encouraged

User Anderson Silva
by
5.2k points