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Which of the following represents a serious barrier to entry

 Which of the following represents a serious barrier to entry?

a.high fixed cost

b.low fixed cost

c.easy access to acquiring resources

d.no history of patents in the industry 

e.very elastic demand for the good

82.              Which of the following undermines the effectiveness of a barrier to entry?

a.the existence of patents in the industry

b.high fixed cost

c.no access to resources

d.product differentiation

e.rapid technological innovation

83.              Barriers to entry are

a.not too difficult to overcome in a monopoly market structure

b.very high in a perfectly competitive market structure

c.nonexistent in an oligopoly market structure

d.not too difficult to overcome in a monopolistically competitive industry structure

e.nonexistent in a monopoly market structure

84.              Having product differentiation means that a firm

a.cannot raise its price without suffering substantial loss of sales

b.shifts the demand for the product to the left

c.produces a good that is only a close substitute, at best, for the goods produced by
other firms in the industry

d.produces a good that is a perfect substitute for the goods produced by other firms in
the industry

e.has no incentive to advertise

85.              Which of the following would undermine a firm’s product differentiation?

a.duplicating another firm’s good

b.advertising

c.being awarded a patent

d.developing brand loyalty

e.having fewer close substitutes

86.              Product differentiation allows the firm to

a.raise price and lower quantity demanded

b.raise price without suffering a substantial loss of sales

c.shift the market demand curve to the left

d.shift the market supply curve to the left

e.decrease barriers to entry

87.              The entry of new firms into a market will

a.increase the market demand curve

b.make the existing firms’ demand curves more elastic

c.make the market demand curve less elastic

d.shift the firm’s demand curve to the right

e.shift the market supply to the right

88.              Which of the following is a characteristic of the perfectly competitive market structure?

a.advertising

b.product differentiation

c.perfect substitutes

d.patents

e.mutual interdependence

89.              The market demand curve for a perfectly competitive industry is

a.perfectly horizontal

b.perfectly vertical

c.upward sloping

d.downward sloping

e.nonexistent in perfect competition

90.              The individual firm’s demand curve under conditions of perfect competition is

a.perfectly horizontal

b.perfectly vertical

c.upward sloping

d.downward sloping

e.nonexistent in perfect competition

Dec 12 2019 View more View Less

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