Is the marginal revenue negative in the inelastic portion of the AR=D curve in monopolistic competition and monopoly market structures? Are perfectly competitive markets allocatively efficient in the long? run? What is the relationship between a? monopolist's demand cu...
1. Given a natural monopoly, at what output should the government regulate the monopoly to be: a. Most efficient b. Most profit maximizing c. Most expedient 2. What are the pros and cons of each of th Explain the long run economic profit earned by each of the four: -perfe...
Is a truly free-market economy destined to descend into monopoly, or will the market always correct itself with the "invisible hand?" A market with a single buyer is called: A. a monopsony. B. a monopoly. C. efficient. D. competitive. What is a free market? Compare the efficiency of...
True or False: (Explain) A profit-maximizing monopolist can never be allocatively efficient. Suppose a monopoly is producing its profit-maximizing output level. Now suppose the government imposes a lump sum tax on the monopoly, independent of its output. As a result, the ...
Explain how the profit-maximizing rule of setting P=MC leads a perfectly competitive market to be allocatively efficient. Does a firm that sets its price greater than marginal cost apply to monopolistic competition, perfect competition, or both? Explain. ...
Monopolistic competition refers to a market type where sellers sell almost the same products. This kind of market is different from the monopoly markets since they have competition. Even though the products sold in the monopolistic competition are alm...
If a firm is producing a given level of output in an economically efficient manner, then it must be the case that ___. a. this is the lowest cost method of producing that output b. each input is producing its maximum marginal product c. ...
A. perfectly competitive. B. a monopoly. C. monopolistically competitive. D. an oligopoly. Market Structure: A market in economics refers to a context where potential sellers of goods and services are brought into contact with potential buyers ...
A firm that earns zero economic profit always operate in a manner that is allocatively efficient. Explain. Assume that the market price is above is 0R. At the profit-maximizing level of output, the profit of the firm is equal to the area given by ...
Is it possible for a company to have a sustainable competitive advantage when its industry becomes hypercompetitive? Hypercompetition: Hypercompetition refers to a situation where companies are competing to gain a more significant market share. It results from the ...