Barriers that prevent the entry of new firms may arise because:
a. economies of scale exist over a substantial range of industry demand.
b. marginal revenue is less than average total cost
c. the government protects some firms from competition.
d. of both (a) and (c).
d
You might also like to view...
A fixed money-supply rule will have the greatest stabilizing effect on output when
A) money demand is unstable and commodity demand is stable. B) both money and commodity demand are unstable. C) both money demand and commodity demand are stable. D) the velocity of money is unstable.
The natural rate of unemployment:
A. is zero. B. occurs at the economy's potential level of output. C. will cause a steady rise in the price level. D. All of these statements are true.
If the United States were to pass legislation that would make it harder for people to emigrate to the United States, this would cause
A. the short-run aggregate supply curve to shift to the right. B. the short-run aggregate supply curve to become flatter. C. the short-run aggregate supply curve to shift to the left. D. the short-run aggregate supply curve to become nearly vertical at all levels of output.
If the demand curve is perfectly elastic, and if the price of the good is increased by 10 percent by the seller, then revenue from the sale of the good would
A. remain constant. B. fall to zero. C. increase by 10 percent. D. decrease by 10 percent.