Which of the following costs may provide barriers to entry in a market?
A) High research and development expenditures
B) License fees
C) Sunk costs associated with specialized facilities
D) all of the above
D
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When the percentage change in price is greater than the corresponding change in quantity demanded, demand is inelastic
Indicate whether the statement is true or false
When the sale of a good is illegal, it is like setting a price ceiling at zero
a. True b. False Indicate whether the statement is true or false
What is the price of funds in the loanable funds market?
a. The real wage rate b. The Consumer Price Index c. The interest rate d. The profit rate e. The GDP price index
For a firm in a perfectly competitive market, if it produces where marginal cost exceeds marginal revenue it:
A. is impossible to tell if it is actually maximizing profits. B. should increase production to increase profits. C. should cut back production to increase profits. D. is producing a profit-maximizing quantity.