All of the following are considered a barrier to entry into a market EXCEPT
A. ownership of resources without close substitutes.
B. economies of scale.
C. when firms can only earn a normal rate of return in a market.
D. governmental restrictions on a firm's ability enter a market.
Answer: C
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At equilibrium in a market for a product, the total revenues received by sellers equal the
A. market producer surplus. B. total amount spent by buyers on the product. C. market consumer surplus. D. total profit of sellers.
The text uses traffic congestion as an example of
A) a surplus of automobiles. B) a negative externality. C) a good priced above equilibrium. D) an engineering rather than an economic problem.
A monopolist can:
a. produce as much or as little as it wants without affecting price. b. decide the price that will be charged in the market. c. provide discounts below market price to attract more customers. d. price its products by considering the possible reactions of future competitorsor firms that produce close substitutes for its output.
Which of the following would maintain equilibrium without any changes in price or quantity?
a. supply unchanged; demand unchanged b. supply unchanged; demand decreases c. supply increases; demand unchanged d. supply unchanged; demand increases