The behavior of the monopolistic firm:
a. maximizes the benefits to consumers, given the resources available to the economy.
b. reduces output in order to raise prices in the short-term
c. results in excess capacity and inefficiency.
d. both b and c
d
Economics
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The above figure shows the isoquants for producing steel. When producing less than 10,000 tons there are
A) increasing returns to scale. B) decreasing returns to scale. C) constant returns to scale. D) diseconomies of scale.
Economics
A model of choice in economics starts by assuming that:
a. people try to minimize their losses. b. people try to maximize their consumption. c. people try to minimize their costs. d. people try to maximize their utility.
Economics