Which of the following describes a barrier to entry?
A) something that establishes a barrier to expanding output
B) anything that protects a firm from the arrival of new competitors
C) a government regulation that bars a monopoly from earning an economic profit
D) firms already in the market incurring economic losses so that no new firm wants to enter the market
E) Firms are legally prohibited from exiting the market in order to enter another market.
B
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Recall the Application. The equilibrium price of pecans increased because the demand curve shifted
A) up and to the right. B) up and to the left. C) down and to the right. D) down and to the left.
If a corporation goes bankrupt, bondholders have ________ on the firm's assets
A) second claim, after stockholders, B) no claim C) first claim D) third claim, after the IRS and stockholders,
Marginal, average, and total figures are unrelated
a. True b. False Indicate whether the statement is true or false
Recessionary gap arises when
A. inventory stock falls. B. government spending increases. C. when the general price level increases. D. there is less spending than desired.