Consider an unregulated monopoly in Figure 8.13. Suppose that a second firm enters the market. As a result, if the demand curve facing each firm lies entirely below the long-run average cost curve:

A. only one of the two firms can make a positive economic profit.
B. both the first and the second firm make positive economic profits.
C. neither firm makes a positive economic profit.
D. There is not sufficient information.


Answer: C

Economics

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Which of the following best describes a situation where research is considered appropriable?

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Economics