The long-run supply curve is upward sloping in an increasing cost industry.
Answer the following statement true (T) or false (F)
True
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Common property can lead to market failure
Indicate whether the statement is true or false
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P4 and Y1. B. P4 and Y2. C. P5 and Y1. D. P5 and Y2.
Exhibit 8-7 Monopolist
?
According to the information provided in Exhibit 8-7, if the Rudd Ice Company is a monopoly and is currently charging a price of $6, what would you advise Rudd to do?
A. Stay where he is currently operating because he is charging the profit maximizing price. B. Increase price and decrease output. C. Decrease price and increase output. D. Increase output and hold price constant.
Theoretically, a firm can enter an industry with low prices, drive out their competition, and take advantage of their newly-achieved monopoly power to raise prices, but the evidence is that Walmart has
A. never tried to do this. B. succeeded at doing this. C. tried to do this and failed for legal reasons. D. tried to do this and failed for economic reasons.