________ is (are) protected by barriers to entry, specifically ________.
A. Cable companies; patents
B. DeBeers Company; economies of scale
C. State lotteries; government rules
D. All of the above are correct.
Answer: C
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Assume that price is greater than average variable cost. If a perfectly competitive firm is producing at an output where price is $114 and the marginal cost is $102, then the firm is probably producing more than its profit-maximizing quantity
Indicate whether the statement is true or false
Dumping occurs when a firm
A) sells too much of a good in a foreign country. B) sells in a foreign country at prices that are below fair value. C) sells in its home market at prices that are below the average price charged by its competitors. D) sells in a foreign market at prices that are below the prices charged by firms based in the foreign market. E) charges more than a fair price.
The tragedy of the commons can be solved by:
a. turning the good into a public good b. government regulation or taxation to prevent overconsumption c. both of the above d. neither of the above
If the equilibrium level of real Gross Domestic Product (GDP) is greater than the full-employment real Gross Domestic Product (GDP) consistent with the position of the economy's long-run aggregate supply (LRAS) curve, then the difference between full-employment real Gross Domestic Product (GDP) and current equilibrium real Gross Domestic Product (GDP) is
A. an inflationary gap. B. the level of output consistent with natural unemployment. C. a recessionary gap. D. an aggregate demand shock.