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What term do economists use to describe how governmental agencies such as, say, the Federal Trade Commission, may go from being a “watchdog” for consumers to being a “lapdog” for industry?
A. Regulatory capture effect
B. The Averch-Johnson effect
C. The shut-down rule
D. A natural monopoly
E. None of the statements in A—D accurately state the shutdown rule for a competitive firm.
Show, with graphs, why a monopoly may operate in the upward or downward sloping section of its long term average cost curve but a competitive firm operates only in the upward
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