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If a monopoly is forced to charge a price equal to marginal cost:a. output wil fallb. consumer surplus will decreasec. other firms will enter the industryd. the deadweight loss will decrease
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- The pricing in monopoly prevents some mutually beneficial trades. The value of these unrealized mutually beneficial trades is calleda. inequitiesb. sunk costsc. a deadweight lossd. opportunity costs
- The large barriers to entry are a reason a monopoly:a. maximizes its profits by producing where P=Mcb. produces at the minimum average total cost in the long run.c. Produces with no fixed costs in the long rund. earns an economic profit in the long run