In order to maximize profits,firms must produce at the lowest possible cost.However when producing at a cost that is higher than necessary:
A) a monopoly firm can continue to operate with lower profits but a competitive firm will have to exit the market.
B) a monopoly firm has the incentive to lower cost and increase profit but a competitive firm will increase price and remain in the market.
C) a monopoly firm will expand output and increase price while a competitive firm will not change output or price.
D) a monopoly firm has the incentive to produce at the lowest cost possible while a competitive firm will only earn a lower economic profit.
Correct Answer:
Verified
Q2: In most models of oligopoly _.
A)the output
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Q5: Why are the estimates of the deadweight
Q6: Suppose that at the competitive equilibrium,the elasticity
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Q8: Use the following table to answer the
Q9: Which of the following is a consequence
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Q11: The excess of price over marginal cost
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