A monopolist that is earning economic losses will, in the long run,
a. exit the industry.
b. shift it's demand curve rightward.
c. stay in the industry, since eventually the price will have to rise.
d. encourage competitors to enter the industry in order to enliven it.
A
Economics
You might also like to view...
Financial intermediation is necessary because of
A) asymmetric information. B) adverse selection problems. C) the risk of moral hazard. D) all of the above.
Economics
If a perfectly competitive firm finds that price is less than average variable cost, it should:
A. increase output until price equals marginal cost. B. decrease output until price equals marginal cost. C. shut down immediately. D. not adjust output if marginal cost equals price.
Economics