« previous next »

Author Question: A monopolistically competitive firm is like a perfectly competitive firm insofar as both A) have ... (Read 129 times)

ap345

  • Hero Member
  • *****
  • Posts: 537
on: Jun 29, 2018
A monopolistically competitive firm is like a perfectly competitive firm insofar as both
 
  A) have negatively sloping demand curves.
  B) can make zero economic profit in the long run.
  C) have horizontal MR curves.
  D) are protected by high barriers to entry.

Question 2

In the United States, why are cartels among firms usually kept secret?
 
  What will be an ideal response?


deja

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

Cartels are typically kept secret because they are illegal. In the United States and many other countries, it is illegal for firms to collude to form a cartel. It is illegal because firms collude in order to restrict output, raise prices, and capture consumer surplus so that they increase their economic profit.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

Did you know?

Sperm cells are so tiny that 400 to 500 million (400,000,000–500,000,000) of them fit onto 1 tsp.

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Did you know?

Green tea is able to stop the scent of garlic or onion from causing bad breath.

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Non-competitive inhibition Non-competitive inhibition
Abdominal thrusts are delivered with a firm thrust into the patient’s abdomen with an upward ... Abdominal thrusts are delivered with a firm thrust into the patient’s abdomen with an upward ...
One-handed kneading. Tissues are lifted with the whole hand in firm contact. One-handed kneading. Tissues are lifted with the whole hand in firm contact.
Lineweaver–Burk plots of the reactions with and without a competitive inhibitor Lineweaver–Burk plots of the reactions with and without a competitive inhibitor
A substrate and its competitive inhibitor A substrate and its competitive inhibitor
Project Management: Achieving Competitive Advantage, 5th Edition Project Management: Achieving Competitive Advantage, 5th Edition
Video: Introduction to Dysrhythmia

For a complete list of videos, visit our video library