According to William Shepherd's examination of competitive trends in the U.S. economy, a market is effectively competitive if
a. the top four firms supply more than 60 percent of the market, have stable market shares, and cooperate with each other
b. the top four firms supply more than 60 percent of the market, have stable market shares, and compete with each other
c. the industry exhibits low concentration, few barriers to entry, and little or no collusion
d. the industry exhibits low concentration and little or no collusion, despite significant barriers to entry
e. the dominant firm has two close rivals
C
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A monopolistically competitive firm ________
A) can increase price without losing all of its business B) loses all of its business if it increases price slightly C) faces a perfectly elastic demand curve D) faces a perfectly inelastic demand curve
What costs associated with the new miles-per-gallon requirements arise from decisions made in self-interest and in the social interest?
What will be an ideal response?