a) Monopolistic competitive firms protect their economic profits with barriers to entry.
b) the telecommunications industry is made up of three very large firms and thousands of smaller firms. Because there are so many firms, it cannot be classified as an oligopoly.
c) Monopolistically competitive firms are efficient because in the long run price falls to equal margin cost.
2007-09-22 10:40:06 · 5 answers · asked by S S 1 in Social Science ➔ Economics
wanting help with you business school homework? or is this something you deeply care about?---lol
2007-09-22 10:43:23 · answer #1 · answered by avz 2 · 0⤊ 0⤋
By the appearance of the verbiage used, I agree with selection C.
%Each selection has a contrary theme. In selection A, how can a Monopoly involve Competition?
B. mentions a contrary opinion of "having too many firms NOT being classified as an Oligopoly."
Consult a LAWYER. This question relates to too many details.
2007-09-22 10:58:18 · answer #2 · answered by Anonymous · 0⤊ 0⤋
a. agree. if they had competition it would cease to be a monopoly and they might have to lower prices to drive the competition out of business.
b.agree. basically a truthful statement.
c.disagree. a monopoly sets a price that is normally all the market will stand. and it only goes up not down.
2007-09-22 10:48:34 · answer #3 · answered by Loren S 7 · 1⤊ 0⤋
a) constant returns to scale... yea i forget that b) this one i know. as long as MC is > than AVC then they will continue to stay in business in hopes that things will get better if it is < AVC, then it will go out of business So if MC is higher than ATC, then it will make a profit if it is between ATC and AVC then it will continue to pay for the firm below AVC, then it closes down Why? No idea, i just learned this :P
2016-05-21 01:24:16 · answer #4 · answered by ? 3 · 0⤊ 0⤋
uuuuuhmmmm
sure
because i have no idea what that means
2007-09-22 10:45:35 · answer #5 · answered by Bigman0990 1 · 0⤊ 0⤋