Is collusion possible in monopolistic competition? Why or why not?
What will be an ideal response?
Collusion is not possible in monopolistic competition. It is not possible because there are many firms in monopolistic competition, reaching an agreement to restrict output and boost price is impossible.
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In the above figure, at the efficient quantity of CDs
A) total consumer surplus is zero. B) total producer surplus is zero. C) the sum of consumer surplus and producer surplus is maximized. D) Both answers A and B are correct.
The Bretton Woods exchange rate system was an example of a
A) target zone. B) managed float. C) pure gold standard. D) modified gold standard. E) floating exchange rate system.
Briefly explain why gross domestic product is not a welfare measure
What will be an ideal response?
The break-even price for a perfectly competitive firm is the price that is equal to
A) AVC. B) ATC. C) MC. D) MR