When economies of scale are unimportant and a monopolistic firm is split into several competitive units:...
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When economies of scale are unimportant and a monopolistic firm is split into several competitive units: a) the competitive price will be less than the monopoly price. b) competition among firms will cause price to fall to the level of production costs. c) output will increase but so will price since the marginal cost curve is upward sloping. d) the monopolist's profits will be divided among the newly competitive, rival firms. e) both c and d are correct. When economies of scale are unimportant and a monopolistic firm is split into several competitive units: a) the competitive price will be less than the monopoly price. b) competition among firms will cause price to fall to the level of production costs. c) output will increase but so will price since the marginal cost curve is upward sloping. d) the monopolist's profits will be divided among the newly competitive, rival firms. e) both c and d are correct.
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Strategic Management and Competitive Advantage Concepts and Cases
ISBN: 978-0133127409
5th edition
Authors: Jay B. Barney, William Hesterly
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