If a "certificate of convenience and public necessity" protects a monopolist's position, the barrier to entry this firm relies on is called
A) a tariff.
B) a government license.
C) a patent.
D) economies of scale.
Answer: B
You might also like to view...
Which of the following statements is TRUE?
A) investment = disposable income + consumption B) saving = personal income + consumption C) saving = personal income - consumption D) saving = disposable income - consumption
Quotas are
A. methods for reducing imports by limiting the quantity of goods from a specific country that can enter the country each year. B. taxes on imports that raise their prices and reduce their attractiveness to domestic buyers. C. voluntary agreements designed to reduce the harm to firms engaged in foreign trade. D. subsidies to foreign producers to encourage them to trade.
According to the cost-benefit principle if a change generates $50,000 in gains and $45,000 in losses,
A) it is desirable. B) the gain is not large enough to justify the change. C) the desirability depends on who gains and who loses. D) it is a Pareto improvement.
The quantity supplied of bagels is 100 at the unit price $1. Suppose the price elasticity of supply by the initial value method is 1.5, and you would like to induce sellers to increase the quantity of bagels supplied to 130. Then the new price for bagels must be:
A. $11. B. $10.20. C. $1.20. D. $1.10.