Papa Joe's Car Dealership is the only dealership in Victorville,California.The owner,Papa Joe,experiences large economies of scale.Because he is the only seller of cars in the town:
A) Papa Joe has market power.
B) Papa Joe has no market power and must price at marginal cost.
C) Papa Joe can charge any price he wants and will still sell the number of cars that maximize his profits.
D) consumer surplus is maximized in the car market.
E) total economic surplus is maximized in the car market.
Correct Answer:
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