When a monopoly operates in a contestable market:
A.) it charges the same price as an ordinary monopoly.
B.) it is unable to charge a price above cost without inducing entry by a rival firm.
C.) it is able to form a cartel with the other large firms and charge prices considerably above cost.
D.) Both A and B are true.
B.) it is unable to charge a price above cost without inducing entry by a rival firm.
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A large inheritance from a relative will tend to
a. cause movement up and to the right along your labor supply curve b. cause movement down and to the left along your labor supply curve c. shift your labor supply curve outward d. shift your labor supply curve inward e. make the income effect of a wage increase positive
Import quotas on products will increase the price consumers pay for imported products and:
Decrease the volume of exports Decrease the volume of imports Increase the volume of imports Have no effect on the volume of imports or exports
Which of the following is correct?
A. The excess capacity problem diminishes as the monopolistically competitive firm's demand curve becomes less elastic. B. The excess capacity problem means that monopolistically competitive firms typically produce at some point on the rising segment of their average total cost curve. C. The greater the degree of product variation, the lesser is the excess capacity problem. D. The greater the degree of product variation, the greater is the excess capacity problem.
A multinational agency that specializes in making loans to a larger number of developing nations to promote long-term development and growth is
A. the International Bank. B. the World Bank. C. the World Monetary Fund. D. the International Monetary Fund.