Homework Answers
Answer
1.
a Cartel will always earn supernormal profit, ad it can only happen if ATC is lower than market price.
2.
this is an example of oligopoly as there are few large firms which supply the industry demand.
3.
Barriers to entry are very prevalent , and new firms will be restricted to enter .
4.
There are many small firms in monopolistic competition , but in monopoly there is one single firm.
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