Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / All of the following are considered a barrier to entry into a market EXCEPT A) ownership

All of the following are considered a barrier to entry into a market EXCEPT A) ownership

 All of the following are considered a barrier to entry into a market EXCEPT

A) ownership of resources without close substitutes.

B) when firms can only earn a normal rate of return in a market.

C) economies of scale.

D) governmental restrictions on a firm's ability enter a market.

25) All of the following are considered a barrier to entry into a market EXCEPT

A) government licenses.

B) persistent declining long-run average costs as output increases.

C) lowering tariffs.

D) governmental regulations of business conduct relating to workplace conditions.

26) Shortly after the turn of the century, U.S. Steel owned most of the iron ore reserves in the country. This is an example of

A) monopoly due to government restrictions.

B) a barrier to entry from owning an important resource.

C) a barrier to entry from scale economies.

D) monopoly due to governmental entry restrictions.

27) Entry barriers are most significant in

A) pure competition.

B) monopolistic competition.

C) oligopoly.

D) pure monopoly.

28) Considering the spectrum of market structures and moving from pure competition to pure monopoly we can say that

A) entry barriers get lower but exit gets more difficult.

B) entry becomes harder but exit becomes easier.

C) entry gets harder and the number of firms dwindles.

D) none of the above

29) When it takes one firm in an industry to produce the quantity necessary to realize low unit costs, the industry

A) experiences economies of scale.

B) has barriers to entry due to ownership of resources.

C) has no barrier to entry.

D) has a license granted by the government.

30) Which of the following is not true when there are large economies of scale such that one firm can produce at a lower average cost than can be achieved by multiple firms?

A) This situation produces a natural monopoly.

B) Proportional increases in output yield proportionally small increases in total cost.

C) The long-run average cost curve of the firm will increase at a low level of output.

D) There will only be one firm in this industry.

31) If it is not profitable for more than one firm to be in an industry, we have an example of

A) monopoly due to ownership of key resources.

B) monopoly due to governmental entry restrictions.

C) monopoly due to economies of scale.

D) pure competition.

32) If it is not possible for a pharmaceutical drug maker to sell its generic cholesterol reducing drug along with some name brand cholesterol reducing drugs, we have an example of

A) monopoly due to ownership of key resources.

B) monopoly due to governmental entry restrictions.

C) monopoly due to economies of scale.

D) pure competition.

33) A natural monopoly exists when

A) the firm holds a patent.

B) there are governmental entry restrictions.

C) the firm owns all of the raw materials needed to produce the product.

Dec 10 2019 View more View Less

Answer (UnSolved)

question Get Solution

Related Questions