This topic contains a solution. Click here to go to the answer

Author Question: In monopolistic competition, each firm's marginal revenue curve lies ________ its demand curve ... (Read 188 times)

drink

  • Hero Member
  • *****
  • Posts: 554
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.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

af

  • Sr. Member
  • ****
  • Posts: 356
Answer to Question 1

B

Answer to Question 2

A




drink

  • Member
  • Posts: 554
Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it


robbielu01

  • Member
  • Posts: 336
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

According to animal studies, the typical American diet is damaging to the liver and may result in allergies, low energy, digestive problems, and a lack of ability to detoxify harmful substances.

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

Did you know?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

For a complete list of videos, visit our video library