As the demand for a product falls, it is not uncommon for the industry to become a monopoly. This is most likely due to
a. an increase in the number of barriers.
b. legal restrictions being imposed.
c. the surviving firm operating on the declining part of its average cost curve.
d. patent protection causing high prices.
c
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The unregulated, single-price monopoly shown in the figure above will produce where its demand
A) equals its MC curve. B) equals its ATC curve. C) is inelastic. D) is elastic.
Kathy and Amy paint pictures and do caricatures to sell to tourists. In one day, Kathy can either paint two pictures or do four caricatures. In one day, Amy can either paint three pictures or do three caricatures
For both Kathy and Amy, what is the opportunity cost of painting one picture? Who has the comparative advantage in painting pictures and who has the comparative advantage in doing caricatures? How might they be able to increase their total output?