If the government imposes an effective ________, output decreases and ________ increases

In the long run, which of the following is not a problem for a monopolist earning economic profit?

a. other firms have an incentive to create substitutes for the monopolist's product b. technological change tends to break down barriers to entry c. patents expire, licenses must be renewed, and new sources of essential resources may be discovered d. government often decides to regulate monopolies e. all profit will gradually be converted to consumer surplus

Informal collusion to restrict output and increase prices is sometimes referred to as a:

A. Merger B. Cartel C. Tacit understanding D. Kinked-demand oligopoly