I’maSolarPanelCo. manufactures and distributes solar panels in the US market. Two years ago, it had 5 US competitors, but government stimulus in the industry has encouraged 7 new US competitors to enter the market. In these circumstances, I’maSolarPanelCo.’s price for its output
A. can be tailored to exceed the price of its inputs.
B. is dictated by the forces of demand and supply.
C. can be tailored to meet the price of its inputs.
D. can be set by management to maximize profits.
Answer:B
I’maSolarPanelCo. manufactures and distributes solar panels in the US market. Two years ago, it had 5 US competitors, but government stimulus in the industry has encouraged 7 new US competitors to enter the market. In these circumstances, I’maSolarPanelCo.’s price for its output
A. can be tailored to exceed the price of its inputs. B. is dictated by the forces of demand and supply. C. can be tailored to meet the price of its inputs. D. can be set by management to maximize profits.
Explanation: Category: Analyze