Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Briefly explain what is wrong with the following statements? A. Economies of scale lead to a downward sloping marginal cost curve. B. It is easy

Briefly explain what is wrong with the following statements?

A. Economies of scale lead to a downward sloping marginal cost curve.

B. It is easy to get rid of monopolies; all it takes is that the government uses its legal power to remove artificial barriers to entry and break up large conglomerates into smaller entities.

C. Monopolistic competition is efficient because, unlike monopolies, firms in monopolistic competition cannot earn supernormal profit in the long run.

D. It makes perfect sense for all oligopolists in an industry to agree to form a cartel because in that case they can behave like a monopolist.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

E Marketing

Authors: Raymond Frost

7th Edition INTERNATIONAL EDITION

0132953443, 978-0132953443

More Books

Students also viewed these Economics questions

Question

a. What is the name of the university?

Answered: 1 week ago

Question

Always have the dignity of the other or others as a backdrop.

Answered: 1 week ago