Unlike a firm in pure competition, a monopolist may be able to
a. block the entry of new firms into the industry.
b. continue to earn economic profits in the long run.
c. earn economic profits in the short run.
d. both block the entry of new firms into the industry and continue to earn economic profits in the long run.
d. both block the entry of new firms into the industry and continue to earn economic profits in the long run.
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Although tacit collusion can enhance the price-setting power of the participating firms, it can also result in greater efficiency in production, which also benefits society
Thus, it is not immediately clear, a priori, when tacit collusion actually hurts or helps consumers. Indicate whether the statement is true or false
Individuals who face greater risks
a. are more likely to purchase insurance b. are less likely to purchase insurance c. are neither more nor less likely to purchase insurance d. are risk neutral
Refer to Figure 9.5. The firm is producing Q units. Which area represents producer surplus?
A. ABCDE
B. EDGF
C. EDCHF
D. ABHF
A market that experiences both strikes and lockouts at different times is most likely characterized by
A. Monopsony. B. Monopoly. C. Bilateral monopoly. D. Monopolistic competition.