If a market is not subject to large, frequent shifts in demand,
a. firms will have a tendency to lower prices to increase market share
b. the market will have few firms
c. prices will approach equilibrium very slowly
d. price leadership will rarely occur
e. cheating on collusive agreements is more difficult
E
Economics
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In the long run, a monopolistically competitive firm's price equals
A) its average total cost and its marginal cost. B) its average total cost but not its marginal cost. C) its marginal cost but not its average total cost. D) neither marginal cost nor its average total cost.
Economics
For the monopoly shown in the figure above, the profit maximizing output is
A) 4 units per day. B) 5 units per day. C) 6 units per day. D) 10 units per day.
Economics