Monopolists can choose to produce at any price along its demand curve, but that option does not exist for firms in perfect competition. Explain.
Answer to relevant QuestionsThink in terms of market share and variety of goods. The ability or inability of firms to enter an industry differentiates the monopoly from a monopolistically competitive industry. Explain. Explain why an economist and a zoologist, look ing at horses, cows, and automobiles, would not choose the same two out of three as belonging to a set. Complete the table for a Taco Bell burrito special, using any numbers you wish, to illustrate (1) Taco Bell's most effective advertising and (2) its more moderately effective advertising, relative to the demand schedule for ...For perfectly competitive firms, economic profit exists only in the short run. Why? Perfectly competitive firms in long-run equilibrium produce at the lowest point on their ATC curve. They produce at maximum efficiency. Yet, producing at an output that generates maximum efficiency isn't their intent. Why, ...
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