Author Question: Hotels in New York City frequently experience an average vacancy rate of about 20 percent (i.e., on ... (Read 13 times)

pragya sharda · **on:** Jun 30, 2018

Hotels in New York City frequently experience an average vacancy rate of about 20 percent (i.e., on an average night, 80 percent of their rooms are full). This excess capacity is indicative of a(n) ____ industry.
a. perfectly competitive
b. monopoly
c. monopolistically competitive
d. oligopoly

Question 2

On which two factors do the consequences of a merger depend?

skipfourms123 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

c

Answer to Question 2

The consequences of a merger depends on market structure and on how the merger affects costs. If two perfectly competitive firms merge, their successor (the merged firm) will still be a price-taker.