The long-run equilibrium of a monopolistic competitor lies on:
a. the minimum point of the average total cost curve
b. the downward-sloping portion of the average total cost curve.
c. the upward-sloping portion of the average total cost curve.
d. the minimum point of the marginal cost curve.
b
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The XYZ Co is hiring salespersons. They will be paid a very attractive hourly rate that is independent of how much they sell. Describe an adverse selection that would take place. Describe a moral hazard that would take place
What will be an ideal response?
The U.S. Steel case of 1920 and the Alcoa case of 1945 dealt with which antitrust issue?
A. To what extent should firms be limited in buying plant and equipment from other firms? B. Should an industry be judged by its behavior or by its structure? C. Should the steel and aluminum industries be considered natural monopolies? D. Should mergers be permitted between firms in closely related industries?