How does the existence of the fringe alter the price and output in an oligopoly market?
The existence of a fringe makes price lower and output higher than would occur without it. The smaller the percentage of the market served by the fringe, the higher will be the price the dominant firm chooses and the higher its percentage of market output. The more elastic the supply curve of the fringe, the more elastic residual demand will be and the lower the dominant firm's profits.
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The knowledge and skills people accumulate through experience, education, and training is called
A) physical capital. B) human capital. C) economic investment. D) spillover benefits.
Monopoly firms have a downward sloping curve in the short-run because
a. They have no close substitutes b. There are no barriers to entry c. They have no cost advantage over their rivals d. None of the above