An obstacle that prohibits new firms from entering an industry defines
A. economies of scale.
B. barriers to entry.
C. monopoly power.
D. natural monopoly.
B. barriers to entry.
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Which of the following will occur if the Fed buys $10 million of securities from the University National Bank?
A) The Fed will pay by increasing the University National Bank's deposit account with the Fed by $10 million. B) The University National Bank has $10 million more in securities. C) The Fed will pay by decreasing the University National Bank's deposit account with the Fed by $10 million. D) The University National Bank has $10 million less in excess reserves.
Refer to the payoff matrix below. Which of the following is true for Bright Lights?
A) Their dominant strategy is to set a Low Price.
B) They do not have a pure strategy.
C) They do not have a dominant strategy.
D) Their dominant strategy is to set a High Price.
In perfect competition, environmental externalities need not distort the allocation of resources providing
a. transactions costs are zero. b. average costs are constant for all output levels. c. firms install pollution control equipment. d. the government sets realistic pollution standards.
Christine is an artist who creates custom cookie jars. Her annual revenue from selling the cookie jars is $90,000 . The annual explicit costs of the materials used to make the cookie jars are $54,000 . Christine used $5,000 from her personal savings account to buy pottery tools for her business. The savings account paid 1% annual interest. Christine could earn $6,000 per year as a tax preparer
What is the annual economic profit of her cookie jar business? a. $36,000 b. $35,950 c. $30,000 d. $29,950