Question

It is alleged that markets fail, in some situations, to insure a fair price and thereby limit consumers' freedom. Which statement does not support that allegation?

business ethics

Monopolistic pricing limits the variety of products available to consumers.

Sellers extract extraordinarily high prices in situations where consumers have few options for obtaining a needed product.

From the utilitarian perspective, consumers are always benefited by low prices and balancing the benefits to buyers from low prices with the benefits to sellers of high prices is the only ethical pricing issue.

The more uniformity of prices one finds within an industry, the less likely it is that competition exists.

Answer 1

Correct option is: From the utilitarian perspective, consumers are always benefited by low prices and balancing the benefits to buyers from low prices with the benefits to sellers of high prices is the only ethical pricing issue.

All other options supports the given statement except: From the utilitarian perspective, consumers are always benefited by low prices and balancing the benefits to buyers from low prices with the benefits to sellers of high prices is the only ethical pricing issue. Markets fail in some situations to insure a fair price and thereby limit consumers' freedom because:

• Monopolistic pricing limits the variety of products available to consumers.
• Sellers extract extraordinarily high prices in situations where consumers have few options for obtaining a needed product.
• The more uniformity of prices one finds within an industry, the less likely it is that competition exists.