Question #1

Indicate each statement below is true or false and support your response with diagrams, equations and labels. a) A monopolistic competitor will not be allocationy efficient in the long run. Answer Diagrams/equations/labels b) Regulating a natural monopoly using average cost pricing requires a government subsidy to the monopolist Answer Diagrams/equations/labels c) An oligopolistic firm will probably produce at the kink in its' demand curve Answer Diagrams/equations/labels