Which of the Following Would Erode the Monopoly Pricing Power

question 33

Multiple Choice

Which of the following would erode the monopoly pricing power of a firm that was controlling a market?

• A)New technology developed by the firm that lowered long run average costs.
• B)The development of substitutes for the product by other firms.
• C)A tax on corporate profits.
• D)All of these would reduce the monopoly power of the firm.

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