All of the following could be a barrier to entry EXCEPT:
A. decreasing long-run average cost.
B. rising LMC.
C. patents.
D. switching costs.
E. a government franchise.
Answer: D
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The Affordable Care Act will subsidize the purchase of health insurance for which of the following groups?
a. Doctors and nurses regardless of income. b. Individuals and families with incomes between 133 percent and 400 percent of the poverty level. c. Employees who belong to a labor union. d. All workers employed by firms with fewer than 50 full-time employees.
Refer to Figure 10.2. At output Qm, and assuming that the monopoly has set her price to maximize profit, the consumer surplus is:
A) CDE. B) BDEF. C) ADEG. D) 0DEQm. E) none of the above
In the short run, a monopoly may
a. only earn positive economic profits. b. only earn zero economic profit, c. earn positive economic profits or economic losses. d. only earn economic losses.
The agricultural nation of Luckidom is attempting to answer the three fundamental economic questions. Develop the three questions as they relate to this nation.
A. 1. Should we produce more wheat and fewer soybeans? 2. Should we farm with equipment or by hand? 3. Do the farmers or the governors receive a higher salary? B. 1. Should we farm with equipment or by hand? 2. Do the farmers or the governors receive a higher salary? 3. Should we grow near the riverbed or by the coast? C. 1. Should we use fertilizer? 2. Should we grow near the riverbed or by the coast? 3. Should we produce more wheat and fewer soybeans? D. 1. Should we grow near the riverbed or by the coast? 2. Should we produce more wheat and fewer soybeans? 3. Should we farm with equipment or by hand?