The term "path dependence" refers to
a. inefficient outcomes that result from early technology choices that are not optimal in the long run.
b. the tendency for competitive markets to become monopolistic in the long run.
c. inefficient outcomes that result from negative externalities.
d. the natural growth of monopoly when economies of scale exist in a market.
a. inefficient outcomes that result from early technology choices that are not optimal in the long run.
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If supply is price-inelastic and demand is price-elastic, then the firm can earn positive profits by increasing the price
a. True b. False Indicate whether the statement is true or false
An agreement between two duopolists to function as a monopolist usually breaks down because
a. they cannot agree on the price that a monopolist would charge. b. they cannot agree on the output that a monopolist would produce. c. each duopolist wants a larger share of the market to capture more profit. d. each duopolist wants to charge a higher price than the monopoly price.