The main reason(s) monopolies can earn positive profits for a while is(are)
a. assets cannot quickly move in and out of the industry when demand fluctuates
b. an increase in demand does not lead to entry of firms to absorb the extra demand
c. both A&B
d. none of the above
Question 2
In a sealed-bid first price auction, if you notice that your competition is weaker, you should
a. Shade your bid more
b. Shade your bid less
c. Bid more aggressively
d. Both B&C
