Solved

If, in a Given Market of Multiple Producers, There Is

Question 90

Multiple Choice

If, in a given market of multiple producers, there is a positive gap between price and average cost (P > AC) for an extended period of time, this would suggest that


A) there are many sellers in the industry.
B) there exists an oligopoly or cartel in the industry.
C) this is a contestable market.
D) the firm cannot be a monopolistic competitor.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q85: A perfectly competitive firm and a monopolistically

Q86: Because members of a cartel have a

Q87: The maximin criterion seeks to minimize the

Q88: Cartels provide uniform management, but none of

Q89: Figure 13-3<br>​ <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 13-3 ​

Q91: Society benefits from monopolistic competition because the

Q92: Price leadership works only if there is

Q93: Deviations from the perfectly competitive market can

Q94: Tacit collusion is<br>A)collusion that is carried out

Q95: An oligopoly can be characterized by production