By choosing not to exercise its monopoly power,a firm can flatten its monopoly costs curve.

Question

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By choosing not to exercise its monopoly power, a firm can increase competition and lower its costs, thereby flattening its monopoly costs curve. This is because when a firm exercises its monopoly power, it may incur additional costs such as lobbying expenses, legal fees, and costs associated with maintaining its market dominance. By not exercising its power, the firm can avoid these costs and potentially benefit from increased competition and innovation in the market.

By Choosing Not to Exercise Its Monopoly Power,a Firm Can