In what ways is government involved with the creation of barriers to entry?
What will be an ideal response?
The government often erects barriers to entry by requiring licenses and franchises before firms can legally operate in a market, by granting patents, by assessing tariffs, or by implementing specific regulations that limit entry. It is illegal to enter many industries without a government license, and often the number of such licenses is limited. Patents create a legal monopoly for a period of 20 years, and tariffs help to keep out competition from foreign firms.
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Suppose on any given day there is an excess demand of reserves in the federal funds market
If the Federal Reserve wishes to keep the federal funds rate at its current level, then the appropriate action for the Federal Reserve to take is a ________ open market ________, everything else held constant. A) defensive; sale B) defensive; purchase C) dynamic; sale D) dynamic; purchase
The advent of money market mutual funds is __________ the trend of "institutionalization," in which a __________ percentage of financial assets are directly owned by individuals
A) part of; growing B) part of; shrinking C) not a part of; growing D) not a part of; shrinking
In the above table, what is the marginal factor cost of the 5th worker?
A) $22 B) $18 C) $90 D) $26
The price elasticity of demand is the ratio of the change in quantity demanded to the change in price
a. True b. False Indicate whether the statement is true or false