7) If the government forces a monopoly to set its price equal to its.docx

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7) If the government forces a monopoly to set its price equal to its marginal cost and there are high economies of scale: Group of answer choices the monopolist s costs will exceed revenue. the market will be more efficient than if the prices was equal to average cost. the monopolist is more likely to innovate. the monopolist will earn more profit than if they were unregulated. 8) If production costs and profits are similar, in a competitive market prices will be ________ and its output ________ than a monopoly market. Group of answer choices
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Unformatted text preview: higher; greater lower; lower higher, lower lower; greater 9) Many politicians say that pharmaceutical prices are too high. If the government were to set maximum prices for certain drugs, what would most likely happen? Group of answer choices More new drugs would be introduced. Lower prices would decrease quantity demanded. The public s standard of living would increase. � Pharmaceutical producers would have lower profits to use to research and develop new drugs....
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