19 of 25 A monopolistically competitive firm may earn abnormally high profits in the Long run, but after entry occurs the short-term perceived demand curve shifts to the right Short run, but after entry occur, the long-term perceived demand curve shifts to the right. Short term, but the process of entry will drive those profits to zero in the long run Long term, but the process of entry will drive those profits to zero in the short run 20 of 25 If all the natural gas producers in the U.S. were controlled by Grand One Corp, they would most likely file for a patent to give them exclusive rights to make use and sell for a limited time only. acquire the rights for its investors to produce and sell their product. decrease production, increase prices, and realize positive economic profits. invest in legal protection to prevent copying its methods of production for commercial use. 21 of 25 Natural Monopolies may arise when: there are substantial economies of scale a company has control of scarce resources there are high costs to transport products in smaller markets All of the above 22 of 25 Government _regulations specify that inventors will maintain exclusive legal rights to their respective inventions for trade secret; limited time unlimited time; copyright trademark; unlimited time patent; limited time 23 of 25 ABC Steel and XYZ steel have been secretly working together to reduce output and keep prices high. This is an example of: a cartel a joint monopoly collusion competition in an oligopoly
Answer19.option (C) is correct i,e.short term, but the process of entry will drive those profits to zero in the long run. Reason:The profits will disappear in the long run due to abnormally high profits will attract entry of more firms into the market and drive down the profit to zero.During the long run, new firms can be set up . So, new firms wiould enter & the demand for existing firms would fall and the demand curve will shift to the left. So,this process of entry of new firms would continue to take place until demand curve would become tangent to average total cost curve showing that the firms earn normal Profits only in the long run 20.Option (C) is correct i,e. Decrease Production,increase prices and realize the positive economic profit Reason: when a firm got control of all supply of an necessary input, it gets a monopoly power, that enables the firm to reduce output and rises price, So,allow it to get positive economic profit. As per Chegg guidelines, experts are only supposed to answer the first question if multiple question are posted. Kindly upload it separately. For any queries or answers comment below
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