The actual deadweight loss from monopoly in the U.S. may be greater than calculated estimates because some
a. monopolies experience strong economies of scale
b. monopolists spend resources to secure and maintain their monopoly
c. monopolists may purposely keep price lower than its profit-maximizing level, in order to increase barriers to entry
d. monopolists' markets are contestable
e. monopolists' prices and profits are regulated by the government
B
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Which of the following groups gain from international trade? i. producers of exported goods ii. domestic consumers of imported goods iii. workers in exporting firms
A) i only B) ii only C) iii only D) i and iii E) i, ii, and iii
A firm's long-run average cost curve is
A) the locus of points representing the minimum unit cost of producing any given rate of output when all inputs may be adjusted. B) the locus of points made up of the minimum point on each short-run average total cost curve when only one input may be adjusted. C) the envelope of the firm's variable cost curves. D) identical to the lowest short-run average cost curve the firm has.