A firm that is the only firm in the industry may not behave like a monopolist in order to deter entry of other firms. ?

Answer the following statement true (T) or false (F)


True

Rationale: This will happen when fixed entry costs are not too high nor too low. The firm will produce more to deter the entry of other firms.

Economics

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The only way a consumer can optimize at a corner of her budget is if at least one of the goods is not essential.

Answer the following statement true (T) or false (F)

Economics

Net national product + ________ = ________

A) net interest; gross domestic product B) depreciation; gross national product C) depreciation; private disposable income D) private disposable income; gross national product E) none of the above

Economics

Fiscal policy during periods of relatively low unemployment and low inflation have

A) little effect due to time lags and the crowding-out effect. B) significant effect due to the timely intervention of the president and congress. C) significant effect because the changes in fiscal policy gives investors confidence in the economy. D) little effect because the global market makes up fifty percent of aggregate spending.

Economics

If the Fed wishes to decrease the money supply it could

a. decrease the discount rate. b. decrease reserve requirements. c. sell government securities on the open market. d. Do any of the above.

Economics