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The Existence of Market Power in an Industry Implies That

Question 53

Multiple Choice

The existence of market power in an industry implies that:


A) government should enact regulations to make the industry more competitive.
B) consumers should form consumer protection groups to offset the market power in the industry.
C) government should provide subsidies to encourage firms to enter the industry. As the number of firms increases market power will decline.
D) price is greater than marginal cost.

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