Due to free entry and exit in monopolistic competition, in the long run price must be equal to
average total cost
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Answer the next question based on the following payoff matrix for two oligopolistic firms in which the numbers indicate the profit in millions of dollars for each firm. Firm A? High PriceLow PriceFirm BHigh priceA = $250A = $325??B = $250B = $200?Low priceA = $200A = $175??B = $325B = $175If the two firms collude to maximize joint profits, the total profits for the two firms will be
A. $525 million. B. $500 million. C. $350 million. D. $400 million.
________ a large number of firms competing by making similar but slightly different products
A) Monopoly requires B) Perfect competition requires C) Monopolistic competition requires D) Oligopoly requires E) Both perfect competition and monopolistic competition require
Why do most collusive agreements have difficulty surviving?
What will be an ideal response?
If price elasticity is less than one, then demand is said to be inelastic
Indicate whether the statement is true or false