If competition places discipline on costs, motivating firms to innovate and find more cost-effectiveways to produce, explain why in some markets asingle firm without competitors will produce ata lower cost than if the firm faced competition.

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter22: Price Takers And The Competitive Process
Section: Chapter Questions
Problem 9CQ
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If competition places discipline on costs, motivating firms to innovate and find more cost-effective
ways to produce, explain why in some markets a
single firm without competitors will produce at
a lower cost than if the firm faced competition.

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