Author Question: In each of the following possible circumstances, decide whether the effect will be to:(i)Reduce the ... (Read 23 times)

beccaep · **on:** May 25, 2020

In each of the following possible circumstances, decide whether the effect will be to:

(i)	Reduce the size of monopoly profits

(ii)	Prevent prices being considerably above the competitive level

(iii)

Both

(iv)

Neither

a)	The market is contestable. ________

b)	The firm(s) achieve substantial economies of scale. ________

c)	The firm(s) suffer from considerable X-inefficiency. ________

d)	The firm(s) use a large proportion of their profits for investment in more efficient capital

equipment. ________

e)	The barriers to the entry of new firms are strong. ________

f)	The firms are not aggressive profit maximisers. ________

g)	After a merger, firms engage in a process of rationalisation. ________

h)	Firms engage in extensive advertising. ________

i)	The firms experience managerial diseconomies of scale. ________

ghepp · **Reply #1 on:** May 25, 2020

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