The barrier to entry that sustains a natural monopoly is:
A. economies of scale.
B. implicit price fixing agreements.
C. government regulation.
D. patent protection.
Answer: A
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Which of the following can create a monopoly? I. high prices II. public franchise III. patent IV. government license
A) I and II B) I and III C) I, II and III D) II, III and IV
A. If a stock is expected to pay an annual dividend of $20 forever, what is the approximate present value of the stock, given that the discount rate is 5%?
b. If a stock is expected to pay an annual dividend of $20 forever, what is the approximate present value of the stock, given that the discount rate is 8%? c. If a stock is expected to pay an annual dividend of $20 this year, what is the approximate present value of the stock, given that the discount rate is 8% and dividends are expected to grow at a rate of 2% per year?
Which of the following responses to a positive externality enhances society's welfare?
a. taxes b. subsidies c. effluent fees d. quotas e. a cut in funding
If you were a debtor you would prefer
A. Deflation B. Disinflation C. Unanticipated inflation D. Anticipated inflation