Which of the following statements is true?
A) Monopoly is characterized by no entry barriers.
B) Perfect competition is characterized by high entry barriers.
C) Firms in a market with entry barriers are likely to have more market power than firms in a market with no entry barriers.
D) Firms in a market with no entry barriers are likely to have more market power than firms in a market with entry barriers.
C
You might also like to view...
Explain the relationship between economic growth and labor productivity
What will be an ideal response?
If fluctuations in economic activity come from the supply side, higher inflation is associated with
a. lower interest rates. b. structural deficits. c. higher rates of unemployment. d. lower rates of unemployment.
The longer the time frame of analysis, the easier it is to make adjustments in production by switching production methods and/or building or closing down production facilities
a. True b. False Indicate whether the statement is true or false
Figure 7.2 shows a monopolist's demand curve. The marginal revenue from selling the third unit is:
A. $6. B. $8. C. $10. D. $44.