Multiple choice!! choose one explanation!!
After some months of successful predation (i.e., finally eliminating its rival), Miss Young’s husband can charge henceforth the monopoly prices. Choose one of the answers below and enter into the answer sheet in back. Same applies to all remaining questions.
True. After the predation eliminates rival, the husband is alone in the market therefore can charge monopoly prices.
Depends. After predation eliminates the rival, the husband cannot charge monopoly prices because even though he is alone, if other firms can enter easily, they will do so if the husband raises the prices to monopoly prices.
False. After predation eliminates the rival, the husband cannot charge monopoly prices henceforth because the consumer stops buying the product.
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