Manufacturers of printers and computers set prices independently.This means that they
A)use capital-intensive means of production.
B)use division of labor and specialization in production.
C)do not consider the effect of the prices on the demand for the products.
D)do not consider the negative effect that the high prices have on each other's profit.

Question

Quizplus · Accepted Answer

Manufacturers setting prices independently may not consider how their pricing strategies affect each other's profits, especially in markets where products are complementary, like printers and computers. High prices for one could reduce demand for the other, negatively impacting profits.

Manufacturers of Printers and Computers Set Prices Independently