Which of the following can be a barrier to entry, closing a market to new firms?
A) an elastic industry demand curve
B) control of a vital resource by one producer
C) diseconomies of scale
D) ease of obtaining capital financing
Answer: B
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What is a circular flow diagram and what does it demonstrate?
What will be an ideal response?
Which of the following are expected consequences of common ownership of property and resources?
(a) The threat of corrupt use (b) The danger of over use (c) Free riding (d) All of the above
Holding the nonprice determinants of supply constant, a change in price would
a. result in either a decrease in supply or an increase in supply. b. result in a movement along a stationary supply curve. c. result in a shift of demand. d. have no effect on the quantity supplied.
All of the following are characteristics of perfect competition EXCEPT
A) homogeneous products. B) each firm is a price taker. C) product differentiation. D) a lack of barriers.