Explain whether you agree or disagree with the following statements: a. In all oligopoly models except the
Question:
Explain whether you agree or disagree with the following statements:
a. In all oligopoly models except the contestable-market model, market concentration leads to output below the efficient level, and increasing output would create value that exceeds the social cost of the good. Therefore, profit-maximizing oligopolists have an incentive to increase output.
b. In most oligopolistic industries, positive profits attract new firms and thus increase output.
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Related Book For
Principles Of Economics
ISBN: 9781292294698
13th Global Edition
Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster
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