A major threat to longer-term profits exists when barriers to entry into an industry are high.
A. True
B. False
Answer: B. False
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Given the market demand and cost data in the above figure, the existence of a monopoly firm producing 8 million cubic feet of natural gas makes it possible to produce natural gas at a long-run average cost of
A) 10 cents per cubic foot. B) 20 cents per cubic foot. C) 30 cents per cubic foot. D) 40 cents per cubic foot.
Suppose the labor market is competitive, the supply curve of labor is upward sloping, and the amount of capital is fixed. If the output market changes from a competitive market to a monopoly, what is the effect on its demand for labor? Explain
What will be an ideal response?
A third party is a person, or persons, who:
a. consume goods produced from at least two intermediate inputs. b. avoids the transactions of the two principal parties. c. takes risks to avoid externalities. d. internalizes the costs of market failure. e. is imposed upon by the activity of others.
The impact of instituting investment tax credits is
A) to stimulate private sector investments and increase aggregate demand. B) to stimulate private production and increase aggregate supply. C) to encourage individuals to save in an effort to increase funds available for investment. D) to curtail in excessive lending by financial institutions.