In which of the following situations, is a barrier to entry into a monopoly least likely to exist?
a. A large firm enjoys economies of scale.
b. The tariffs on foreign goods are eliminated by the government.
c. A company is the sole inventor of what it produces and no one else can make a good substitute.
d. Government restrictions such as license requirements are enacted.
e. A company is the only owner of an essential resource needed to produce its product.
b
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After watching a movie, Alan chooses not to watch a second and goes for a walk instead. Economists could explain his choices using the concept of:
A. budget constraints. B. substitution effect. C. income effect. D. diminishing marginal utility.
The market mechanism:
A.) Works through central planning by the government. B.) Eliminates market failures created by the government. C.) Uses prices as a means of communication between consumers and producers. D.) Is very inefficient since consumers cannot communicate directly with producers.
Which of the following is an example of government failure?
A. Inefficient incentives. B. Bureaucratic delays. C. Required use of pollution control technology that is obsolete. D. All of the choices are correct.
Why don't the winners from free trade win the political argument?
What will be an ideal response?