If in a Given Market of More Than One Producer

question 68

Multiple Choice

If in a given market of more than one producer, there were to exist for a long interval of time a positive gap between price and average cost (P > AC) , 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.

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