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प्रश्न
For the following two statements, choose the correct option:
Statement I: If the demand of a product is inelastic, the firm is in a position to fix higher prices.
Statement II: In case the degree of competition is high, the firm is in a position to set high prices.
Choose the correct option from options given below:
पर्याय
Statement I is correct and statement II is wrong.
Statement II is correct and statement I is wrong.
Both the statements are correct.
Both the statements are wrong.
MCQ
उत्तर
Statement I is correct and statement II is wrong.
Explanation:
The price will tend to reach the upper limit in case there is a lesser degree of competition while under conditions of free competition, the price will tend to be set at the lowest level.
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