Which of the following reasons describes the fundamental barrier to entry for the monopoly in the figure?
A) monopoly resources
B) government regulation
C) the production process
D) Both a and b are correct.
Answer: C) the production process
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Legislators in a democracy are more likely to support special interests than the broad interests of citizens generally because
A) incumbents have such powerful advantages in election campaigns. B) money plays such a large role in political campaigns. C) they cannot know what the public interest requires in the absence of market information. D) they do not have to fear being voted out of office. E) they pay attention to the people paying attention to them.
Often to secure a monopoly, one must erect barriers to entry to obtain a monopoly. What is this activity called in general and what does it entail specifically?
What will be an ideal response?
The effect on total market demand from the advertising of a specific brand will
A) always be positive. B) always be negative. C) often be positive. D) often be negative.
Based on the example provided by the authors, what is the key factor that explains much of the growing inequality in wages paid to different types of workers in the U.S. since 1980?
A) Changes in the gender composition of the work force B) Changes in the age distribution of the work force C) Differences in computer and data analysis skills D) Changes in the geographic concentration of workers