Which of the following conditions is characteristic of a monopolistically competitive firm in long-run equilibrium?
a. P > demand and P = MR
b. ATC > demand and MR = MC
c. P > MC and demand = ATC
d. P < ATC and demand > MR
c
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What will be an ideal response?
Consider the market for cable television, a natural monopoly, shown in the figure above. If the regulator imposes an average cost pricing rule, deadweight loss is equal to
A) $5 million. B) $0 million. C) more than $10 million and less than $20 million.. D) $20 million or more.
In this graph for the marginal costs and benefits of pollution controls, implementation of excessively strict pollution controls would be represented by ______.
a. Q1
b. Q2
c. Q*
d. both Q1 and Q2
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What will be an ideal response?