For identical cost conditions, the long-run equilibrium price under any form of imperfect competition is ____ than the long-run equilibrium price in perfect competition because of ____.

a. higher; perfectly elastic demand in imperfect competition.
b. higher; less than perfectly elastic demand in imperfect competition.
c. lower; perfectly elastic demand in imperfect competition.
d. lower; less than perfectly elastic demand in imperfect competition.

b. higher; less than perfectly elastic demand in imperfect competition.

Economics

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If the market price in a competitive market is below the minimum of average variable cost the firm will shut down

Indicate whether the statement is true or false

Economics

An increase in taxes shifts the

a. aggregate supply curve outward. b. aggregate demand curve outward. c. consumption schedule upward. d. consumption schedule downward.

Economics