The absolute value of the price elasticity of demand at the midpoint of a linear demand curve is always

In order to implement average cost pricing regulation, it is necessary to provide a natural monopolist with a subsidy equal to the economic loss

a. True b. False Indicate whether the statement is true or false

For a monopolistically competitive firm, which of the following is ensured by product differentiation?

a. Long-run profit b. Market power c. Economies of scale d. Increasing returns to scale