There are 38 nearly identical ABC stores within a one-mile radius in Waikiki. The combined size of these 38 stores allows ABC to offer large quantities at favorable prices. Identify which of the following properties characterize ABC stores.   A.ABC stores practice perfect price discrimination.   B.For ABC stores, the marginal revenue curve is below the demand curve.   C.ABC stores may earn economic profits in the long run.   D.ABC stores are price takers.

Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter25: Monopoly
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Problem 7E
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There are 38 nearly identical ABC stores within a one-mile radius in Waikiki. The combined size of these 38 stores allows ABC to offer large quantities at favorable prices.

Identify which of the following properties characterize ABC stores.
 
A.ABC stores practice perfect price discrimination.
 
B.For ABC stores, the marginal revenue curve is below the demand curve.
 
C.ABC stores may earn economic profits in the long run.
 
D.ABC stores are price takers.
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