Question: Why does perfect competition often lead to a market in which profits tend toward zero? Why does the government sometimes support a monopoly? Over the

  1. Why does perfect competition often lead to a market in which profits tend toward zero?
  2. Why does the government sometimes support a monopoly?
  3. Over the longrun, why do low-cost providers generally prevail?
  4. In monopolistic competition, a business may enjoy a unique advantage in the short term. In the long term, what could happen to this unique advantage?
  5. What are some of the benefits of perfect competition?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

Colt Company reports pretax financial income of $143,000 in 2007. In addition to pretax income from continuing operations (of which revenues are $295,000), the following items are included in this...

Q:

Help me to reply to four people. Person 1: If US manufacturers produce less output, there will be less need for independent trucking companies to transport goods. In the short run, the trucking...

Q:

Please I have an article on which the questions come from. Please feel out the form appropriately. Please let me know if you can do a good job on this. I have similar exercise coming. Thanks ARTICLE...

Q:

Please I have an article on which the questions come from. Please feel out the form appropriately. Please let me know if you can do a good job on this. I have similar exercise coming. Thanks ARTICLE...

Q:

4 Files 12:47 PM Mon May 16 Insert Draw Layout Review View Unit 3Microec0nomics Name: ELASTICITY Use the space below to take notes during class. Elastic: Unit Elastic: Inelastic: Perfect...

Q:

To answer these questions, you will need to read Chapter 9, Market Equilibrium & Product Price - Imperfect Competition and please good Good format. #. Explain the 3 types of "Imperfect" market...

Q:

HI PLEASE ANSWER ALL 1. Assume the market for apples is initially in equilibrium. Which of the following will result in a higher equilibrium price of apples? a. An increase in both the demand for and...

Q:

Journal Article Review 1. Write Title that reflects the main focus 2. Cite the article 3. Article Identification 4. Introduction 5. Summarize the Article 6. Critique 7. Conclusion The interaction...

Q:

A Journal Article Review for " The interaction between technology, business environment, society, and regulation in ICT industries". 1. Write the Title that reflects the main focus of your work. ......

Q:

5/21/2016 University of Phoenix: Management PRINTED BY: cherylesowell2012@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without...

Q:

1. Suppose that favorable weather conditions significantly increases the supply of sugar in the U.S. this year, and at the same time there is a significant decrease in the demand for sugar, due to...

Q:

Accounting information systems trivia questions: Audit trail of typical documents/records in the revenue cycle who typically receives a copy and why and which documents/records may refer to another...

Q:

The Marriott Tub Company manufactures two lines of bathtubs, called model A and model B. Every tub requires a certain amount of steel and zinc; the company has available a total of 25,000 pounds of...

Q:

Which of the following describes message flows between pook? Muttiple Choice Orchestrations None of these options Intermediate events Sequence flows Choreography

Q:

Besides Woody Robinson, what other parties were at least partially responsible for the inventory losses Goodner suffered? Defend your answer.

Q:

Develop one or more control policies or procedures to alleviate the control weaknesses you identified in responding to Question 2. Data from Question 2 List the key internal control weaknesses that...

Q:

United Savings Bank (USB) is examining the profitability of its Premier Account, a combined savings and checking account. Depositors receive a 2% annual interest rate on their average deposit. USB...

Q:

1. On December 31, 2016, Moss Co. issued $1,000,000 of 11% bonds at 109. Each $1,000 bond was issued with 50 detachable stock warrants, each of which entitled the bondholder to purchase one share of...

Q:

List the key internal control weaknesses that were evident in the Huntington units operations.

Q:

Among a group of 5 8 programmers, who know either Java or Python or both, 1 5 only know Java and 1 3 only know Python. What is the probability of randomly choosing a programmer who knows both...

Q:

1. To gain insight into how a communication situation can be framed to maximize impact.

Q:

2. We can change the use and meaning of the concepts and thereby the meaning of the social reality to which they refer.

Q:

3. What does it mean when we say that we attribute a certain meaning to our experiences?