Author Question: In the long run, if new fringe firms with same cost structures as existing fringe firms enter the ... (Read 83 times)

james · **on:** Jun 30, 2018

In the long run, if new fringe firms with same cost structures as existing fringe firms enter the oligopoly market:
a. the dominant firm's ability to extract profit from the market decreases.
b. the fringe's ability to extract profit from the market decreases.
c. the fringe supply curve rotates leftward and downward.
d. the dominant firm's residual demand curve rotates rightward.

Question 2

If a monopolist's demand curve shifts to the left such that it becomes tangent to the ATC curve at the output for which marginal revenue equals marginal cost, the monopolist will make only a normal profit.
a. True
b. False
Indicate whether the statement is true or false