Question
What is the least likely outcome for a firm enjoying a monopoly in an industry that has a continually falling long-run average cost curve? [1]
What is the least likely outcome for a firm enjoying a monopoly in an industry that has a continually falling long-run average cost curve?
[1] The government regulates the firm as a monopoly.
[2] Buyers find ways to acquire a non-monopoly price from the producer by having a group purchasing agent to do the buying.
[3] The firm charges a monopoly price and goes unchallenged.
[4] Buyers contract with a new producer to provide a market in exchange for a less than monopoly price or the fear of this possibility keeps the monopolist from profit maximising.
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