Question: please answer 6,7,8. thanks Short Answer 6 Will a monopolistically competitive market achieve economic efficiency? Explain using both technical and allocative efficiency. Short Answer 7
Short Answer 6 Will a monopolistically competitive market achieve economic efficiency? Explain using both technical and allocative efficiency. Short Answer 7 Explain the pros and cons of using marginal cost pricing to regulate a natural monopoly. Explain the pros and cons of using average cost pricing to regulate a natural monopoly. Which one do you think is better in the long run for consumers? Short Answer 8 What is a benefit of allowing a natural monopoly to exist? How would costs, price, and quantity with a natural monopoly compare to a government regulation that forced two firms to operate in the same market (both having the same cost curves as the natural monopoly firm)
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