What Is Meant by the Coase Conjecture

question 16

Multiple Choice

What is meant by the Coase conjecture?

• A) Firms in perfectly competitive markets are unable to retain their competitive advantage since products are homogeneous.
• B) A monopoly that sells durable goods competes with itself and so is no longer a monopoly.
• C) Firms in perfectly competitive markets are unable to cover their high ?xed costs.
• D) A monopoly ?nds it di?cult to sustain its supernormal pro?ts as there are no barriers to

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