Why does the government work to eliminate artificial barriers to entry?
What will be an ideal response?
Because if there are economic profits being earned in the industry, eliminating artificial barriers to entry will encourage more firms to enter the industry. The increase in competition is expected to decrease price to consumers and improve service.
You might also like to view...
In terms of exposing others to risk, explain if there is a difference between you choosing to text while driving
and a company selling tablet computers where the batteries have been known to explode when the tablet is left on for a long period of time.
The demand for gasoline in the short run is
A) elastic because people can easily switch to public transportation. B) inelastic because there are very few good substitutes for gasoline. C) perfectly inelastic because people have no choice but to buy gasoline. D) unit elastic because people tend to consume a stable amount of gasoline per period.
Absent regulation of the money supply, the money supply would likely reflect the business cycle
a. True b. False Indicate whether the statement is true or false
Describe how the moral hazard associated with welfare benefits can be reduced, and tell what other problems this creates.
What will be an ideal response?