An insecure monopoly will lose more of its profit preventing other firms from entering when:
A. the zero profit quantity is large.
B. the minimum entry quantity is small.
C. the minimum entry quantity is large.
D. the number of potential entrants is large.
Answer: A
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
When a nation removes restrictions on imported products that nation will
A. experience lower prices and consume higher quantities. B. experience higher prices and consume lower quantities. C. experience higher prices and consume higher quantities. D. experience lower prices and consume lower quantities.
Which of the following is not a characteristic of perfectly competitive markets?
A. Long-run economic profits B. Identical products C. Many sellers D. Free entry and exit
A primary goal of central banks is to:
A. reduce systematic risk. B. keep stock and bond prices high. C. keep inflation rates high. D. reduce the idiosyncratic risk that impacts specific investments.