The reason that the Fisherman's Friend restaurant in Stonington, Maine had a monopoly on selling seafood dinners in that town is most likely due to
A) no competitors apparently found the profit level attractive enough to enter the market.
B) the restaurant owned all the fresh seafood in the state.
C) a government-imposed barrier.
D) occupational licensing.
A
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Economists who support a monetary rule as opposed to an activist monetary policy believe that the effectiveness lag in monetary policy is
A) short and variable, policy changes affect AD quickly and are predictable. B) zero, policy changes have an immediate effect on expenditures. C) long and variable, policy changes affect AD slowly over time and are unpredictable. D) long, but predictable.
In a competitive market with large search costs, many firms, and asymmetric information, why is the monopoly price the only possible single-price equilibrium?
What will be an ideal response?
Which of the following statements is true?
a. Income distribution in the United States has gotten progressively more unequal since 1929. b. The Lorenz curve indicates the degree of discrimination in an economy. c. The Lorenz curve indicates the degree of income inequality in an economy. d. The richest 5% of Americans earn approximately half of the nation's income. e. All of these.
Which of the following statements about markets is not true?
A. Markets necessarily have a physical location. B. The two types of markets include the factor and product markets. C. Every market transaction involves an exchange of money for goods or resources or a direct exchange of goods or resources without money called barter. D. Markets have both a demand side and a supply side.