One of the key reasons why monopolies exist is:
A. there is easy entry and exit into and out of the market.
B. the goods sold are highly inaccessible to buyers.
C. geographical differences.
D. there are barriers to entry into the market.
Answer: D
You might also like to view...
Identify four reasons for high entry barriers. Briefly explain each reason
What will be an ideal response?
A common tool for restricting trade through quantity is:
A. a tariff. B. immigration restrictions. C. international waters use policies. D. import quota.
Import duties ranging from 28 percent to 113 percent on Chinese frozen and canned shrimp are an example of a policy that:
A. protects domestic producers from foreign producers. B. uses regulations and taxes to protect domestic consumers. C. protects domestic fisheries from overfishing. D. protects domestic consumers from foreign producers.
The specificity rule states that
A. Tax rates should vary according to specific characteristics of a product. B. it is more efficient to use a policy tool that is closer to the distortion that is caused by an externality. C. a government tax is the best remedial measure for an externality. D. property rights must be changed to correct for an externality.