If regulators required firms in monopolistically competitive markets to set price equal to marginal cost,
a. firms would most likely experience economic losses.
b. firms would also operate at their efficient scale.
c. new firms would likely to enter the market.
d. the most efficient firms would not likely to be affected.
a
Economics
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Consider the market for gasoline in a moderately large city. All else constant, it would be reasonable to conclude that the price elasticity demand for any individual gas station would be higher (more elastic) than the price elasticity of demand for
gas in general. Indicate whether the statement is true or false
Economics
If OPEC is an effective cartel,
a. price changes are dictated by changes in demand. b. output changes are dictated by changes in demand. c. members agree on output quotas. d. all of these.
Economics