Imperfect information tend to prevent price-taking behavior

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Reference no: EM131088716

Why would high transaction costs or imperfect information tend to prevent price-taking behavior?

High transaction costs and imperfect information would prevent price-taking behavior because they:

a) make the demand curves firms face more horizontal

b) allows products to seem more homogeneous

c) prevent firms from setting prices without losing customers

d) enables firms to enter the market without being detected

e) discourage customers from buying from rival firms.

Reference no: EM131088716

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