Even in firms in a monopolistically competitive market collude successfully and fix price, economic profit will still be competed away if there is unrestricted entry. Explain. Will price be higher or lower under such an agreement in long-run equilibrium than would be the case if firms didn’t collude? Explain.
Answer to relevant QuestionsAntitrust authorities at the Federal Trade Commission are reviewing your company’s recent merger with a rival firm. The FTC is concerned that the merger of two rival firms in the same market will increase market power. A ...Does the executive summary describe the key elements needed in a business plan? Is the proposed offer well written, why or why not? What are the important marketing issues and competitive advantages? What recommendations ...The cost of producing x units of a product is given by:C(x) = 800 + 120x – 120ln(x), x ≥ 1.Find the minimum average cost.Minimum average cost = _____________________Choose three major battles of the Civil War. Identify each and thoroughly explain their impact on the war.Dotz’s Bakery bakes fresh apple pies each morning for sale that day. A pie costs $2.00 to make and sells for $4.00. Any pies left at the end of the day are sold the following day at a discounted price of $1.50. Based on ...
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