Concentration may not be a problem if
A. there are economies of scale.
B. there are economies of scope.
C. the firm does not exercise its market power.
D. all of the above.
Ans: D. all of the above.
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In the long run, the output of a monopolistically competitive firm
a. exceeds that of an otherwise similar perfectly competitive firm b. is less than that of an otherwise similar perfectly competitive firm c. is at the point at which LRAC is minimized d. equals that of an otherwise similar perfectly competitive firm e. is less than that of an otherwise similar monopolist
The largest revenue source in the U.S. federal tax system is the corporate income tax
a. True b. False Indicate whether the statement is true or false
If firms in a monopolistically competitive market are earning economic profits, which of the following scenarios would best describe the change existing firms would face as the market adjusts to the long-run equilibrium?
a. an increase in demand for each firm b. a decrease in demand for each firm c. a downward shift in the marginal cost curve for each firm d. an upward shift in the marginal cost curve for each firm
A simultaneous rise in both aggregate demand and short-run aggregate supply will definitely
A) raise the price level, but there is not enough information provided to know how Real GDP will change. B) lower Real GDP, but there is not enough information provided to know how the price level will change. C) raise the price level and Real GDP. D) raise Real GDP, but there is not enough information provided to know how the price level will change. E) raise the price level and lower Real GDP.