Most economists are concerned about entry barriers. Why is this so important to them?
What will be an ideal response?
Entry barriers enable a firm to earn long-run profits. Furthermore, when there are entry barriers in a market, the industry output does not achieve allocative or productive efficiency, resulting in deadweight losses.
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If a bank has excess reserves of $4,000 and demand deposit liabilities of $100,000, and if the reserve requirement is 15 percent, then the bank has actual reserves of
A) $17,000. B) $19,000. C) $24,000. D) $29,000.
The total cost curve generally has
A. slope values that first decrease and then increase rapidly. B. slope values that first increase rapidly and then decrease. C. increasing slope values. D. decreasing slope values.
Make or buy decisions affect the degree of vertical integration
Indicate whether the statement is true or false
Under a flexible exchange system, which of the following will most likely cause a nation's currency to appreciate on the foreign exchange market?
a. an acceleration in the nation's inflation rate b. a balance of trade deficit c. a current account deficit d. a decline in the domestic inflation rate