Everything else remaining unchanged, if a new seller enters a market to compete with an existing monopoly that is enjoying economies of scale, it will lead to:
A) higher profits for both firms.
B) higher profits for the existing firm.
C) lower profits for the existing firm.
D) higher market power for the existing firm.
C
You might also like to view...
Which of the following statements is true?
A. The lower transaction costs are, the more likely individuals will solve negative externality problems through a voluntary exchange. B. The higher transaction costs are, the more likely individuals will solve negative externality problems through a voluntary exchange. C. Coase agrees with Pigou that taxing those activities associated with negative externalities is a good idea. D. a and c E. none of the above
Classical economists believe that: a. wage ,price, and interest rates are inflexible
b. wage, price, and interest rates are flexible. c. fiscal policy should be used to stabilize the economy. d. monetary policy should be used to stabilize the economy.
The government spends ________ of all health care dollars in the U.S.
A. 10% B. 25% C. 100% D. approximately half
Unless circumstances are quite out of the ordinary, a supply curve will be
A. horizontal. B. vertical. C. upward sloping. D. downward sloping.