Asked by Nelli Vartanian on May 06, 2024
Verified
In well-working markets, any gains from coordination are reflected in the level of product variety.
Coordination Gains
Benefits that arise from individuals or groups working together effectively, particularly in the allocation of resources or in achieving common objectives.
Product Variety
The assortment of different products or services offered by a firm or present in a market.
- Perceive the linkage between the range of products available, the prosperity of consumers, and market fluctuations.
- Comprehend the significance of cost structures (e.g., economies of scale) for market outcomes and variety.
Verified Answer
JK
Jessica KativaMay 09, 2024
Final Answer :
True
Explanation :
In well-functioning markets, coordination among firms and efficient market mechanisms ensure that consumer preferences are met, which is reflected in the level of product variety available. This variety is a result of firms responding to diverse consumer demands and seeking to differentiate their products to capture market share.
Learning Objectives
- Perceive the linkage between the range of products available, the prosperity of consumers, and market fluctuations.
- Comprehend the significance of cost structures (e.g., economies of scale) for market outcomes and variety.
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