Lawsuits can act as a barrier to entry in monopoly markets.
Answer the following statement true (T) or false (F)
True
In the event that competitors actually surmount other entry barriers, a monopoly may sue them out of existence. A timely lawsuit on a new, cash-poor firm alleging patent or copyright infringement can derail such a company by absorbing critical management effort, cash, and time. Long before the lawsuit is adjudicated, the company may be forced to withdraw from the market.
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Which of the following would be included in the calculation of Gross Domestic Product (GDP)?
A) the value of spending on new machinery and equipment B) the value of the sale of 1,000 shares of IBM stock C) the value of transfer payments D) the value of the sale of a used guitar
Which of the following can occur if price controls are imposed on a product?
A. Persistent shortages B. Illegal markets C. Illicit channels of distribution D. Industry investment slows or stops E. All of these responses are correct.
A level of GDP cannot be at equilibrium when aggregate demand exceeds output because firms will notice that
a. inventory stocks are building up. b. inventory stocks are being depleted. c. their profits are negative. d. many of their workers have little to do.
An increase in demand will cause an increase in price, which will cause an increase in quantity supplied
a. True b. False Indicate whether the statement is true or false