25. There are many small firms producing paper in a community. Each firm's goods are identical to the others. The firms have always used to river to dump manufacturing wastes. Which of the following is true? There is no market failure in the industry. There is market failure because of the externalities. a. b. С. There is market failure because this description suggests an oligopolistic industry.

25. There are many small firms producing paper in a community. Each firm's goods are identical to the others. The firms have always used to river to dump manufacturing wastes. Which of the following is true? There is no market failure in the industry. There is market failure because of the externalities. a. b. С. There is market failure because this description suggests an oligopolistic industry.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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*You only need to answer question D*
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Collusion means that: a.two monopolistically competitive firms agree to keep their price lower than their competitors. b.two or more oligopolistic firms act as if they were a monopoly. c.a large number of monopolistically competitive firms decide to keep the price high to maximize collective profits. d.a monopolistic firm uses illegal means to maximize its profits.
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