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Monopsony power

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a.) An isoquant shows that by varying input combination we can produce different quantities of output at the same cost. True or False?

b.) If long run average cost is increasing, this means that a firm operates at increasing returns to scale. True or False?

c.) If perfectly competitive market is monopolized then part of consumer surplus will be transferred to producer. True or False?

d.) Monopsony power enables sellers to obtain higher price than those that would prevail in a competitive market. True or False?

e.) A monopolistically competitive firm that does not operate at the minimum point on its average cost curve does not behave rationally. True or False?

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A monopsony situation is clarified.

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a) FALSE (the isoquant shows that varying input combinations can produce the same output, not ...

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