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Author Question: In monopolistic competition, each firm's marginal revenue curve lies ________ its demand curve ... (Read 120 times)

drink

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on: Jun 29, 2018
In monopolistic competition, each firm's marginal revenue curve lies ________ its demand curve because of ________.
 
  A) below; barriers to entry
  B) below; product differentiation
  C) above; barriers to entry
  D) above; product differentiation

Question 2

Two firms, Alpha and Beta, produce identical computer hard drives. They have identical costs, and the hard drives they produce are identical. The industry is a natural duopoly.
 
  Alpha and Beta enter into a collusive agreement, according to which they split the market equally. If both firms comply with the agreement A) together they will operate in a way indistinguishable from a monopoly.
  B) the price of a hard drive will be equal to marginal cost.
  C) each firm will make zero economic profit.
  D) the oligopoly will produce more hard drives than a profit-maximizing monopoly would produce.


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af

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Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

A


drink

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

flexer1n1

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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