Under what circumstances would a monopolist price be as low as the price that would prevail in a perfectly competitive market?
What will be an ideal response?
If a market is perfectly contestable, existing firms in the market will earn only zero economic profits, irrespective of the number of firms.
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In the figure above, an economy would grow fastest if it produces at point
A) A. B) B. C) C. D) D.
If a firm minimizes its losses by shutting down in the short run, then at all other output levels,
a. variable cost would exceed total revenue b. total revenue exceeds total cost c. marginal revenue exceeds marginal cost d. total cost is zero e. total revenue is zero
The Bretton Woods exchange rate system was replaced by a gold standard.
Answer the following statement true (T) or false (F)
The local ice cream shop is trying to figure out how many workers to hire, and part of the decision will be based on the marginal product of labor. The following table shows a short-run production function for quantity of ice cream tubs produced. Diminishing marginal returns begins after hiring which worker?
a. first b. second c. third d. fourth