If an industry is characterized by economies of scale:
A) barriers to entry are usually not very large.
B) long-run average costs of production increase as the quantity the firm produces increases.
C) capital requirements are small due to the efficiency of the large-scale operations.
D) the costs of entry into the market are likely to be substantial.
D
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Many biologic drug manufacturers are pushing for patent protection to be extended to 12 years before generics are allowed to be introduced to the market. This reflects which of the following barriers to entry?
A) network externalities B) entry blocked by government action C) economies of scale creating a natural monopoly D) control of a key resource
Which of the following events is likely to reduce the demand for on-campus student housing?
a. a rise in rents for off-campus housing b. more students enrolling at the university c. it becomes less fashionable to live "on campus" d. a rise in dorm fees e. a rise in the incomes of students
The United States has run large trade deficits with most of the world since the early
a. 1940s b. 1960s c. 1970s d. 1980s e. 1990s
A demand curve shows the relationship between price and
a. income. b. quantity demanded. c. production. d. income and quantity demanded.