The three main sources of barriers to entry are monopoly resources, government regulation, and the firm's production process
a. True
b. False
Indicate whether the statement is true or false
True
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Consider the market for ride-on lawn mowers and the recent increases in the price of oil. The recent increase in the price of oil makes it more expensive to manufacture ride-on lawn mowers. An increase in the price of oil also makes it more expensive to run a ride-on mower. If the price of oil increases, the demand for ride-on mowers will ________ and the supply will ________.
A. decrease; increase B. increase; decrease C. decrease; decrease D. increase; increase
If a good is produced by firms that generate external costs, the price consumers pay
A. will be efficient as long as it equals the marginal costs of the firms. B. will be too low. C. will be the correct price, but the quantity sold of the good will be too large. D. will be too high because the consumers end up paying the costs instead of the firm.
Which of the following factors fosters the survival of alternative-energy companies?
A. Low price of conventional energy B. Taxes on alternative energy C. Government subsidies for alternative energy D. High production costs of alternative energy
Pa and Pb are the prices that individuals A and B are willing to pay for the last unit of a public good, rather than do without it. These people are the only two members of society. Q Pa Pb 1 $3 $5 2 2 4 3 1 3 4 0 2 5 0 1 If the marginal cost of producing this good at the optimal quantity is $4, the optimal quantity must be
A. 3 units. B. 2 units. C. 4 units. D. 1 unit.