Multiple Choice
Suppose an industry has one or two successful franchises and there is a government policy which limits the number of firms in the industry.What is the likely result?
A) Consumer choice will be maximized.
B) Productive efficiency will be achieved by most firms.
C) Entry by new firms will be easy.
D) The existing franchises can be sold for a price that reflects the economic profits that are being earned by the existing firms.
E) Most existing firms will be earning normal profits only.
Correct Answer:
Verified
Correct Answer:
Verified
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