When the potential threat of new entrants serves to moderate prices in highly concentrated industries, this is called

Suppose the economy is in a long-run equilibrium when a positive demand shock occurs. On the graphs above, show what happens to bring the economy back to long-run equilibrium, assuming that there is no policy response

In words, describe how the graph would be different, if policy makers did intervene.

What is cost-benefit analysis? Suppose that you were asked to do a cost benefit analysis of tearing down an elderly woman's ancestral home to provide space to expand a local high school. What difficulties might you encounter?

What will be an ideal response?