Question : 71) Natural barriers to firms to entering an industry include A) : 1384241

 

71) Natural barriers to firms to entering an industry include

A) control or ownership of the entire supply of an essential raw material.

B) large economies of scale in the industry.

C) a government-awarded franchise.

D) a patent which allows production by only the patent holder.

E) increasing-cost production.

72) A likely cause of a natural monopoly occurring in some industry is

A) scale economies.

B) patents.

C) licenses.

D) charters.

E) sabotage.

73) If an industry’s demand conditions allow at most one firm to cover its costs while producing at its minimum efficient scale (MES), this situation is known as

A) a discriminating monopoly.

B) a natural monopoly.

C) declining marginal revenue.

D) limited competition.

E) natural economic limits.

74) Suppose the technology of an industry is such that the typical firm’s minimum efficient scale is 8000 units per month at an average long-run cost of $5 per unit. If the total quantity demanded at a price of $5 per unit is 8500 units per month, the likely result would be

A) a cartel.

B) a concentrated oligopoly.

C) a natural monopoly.

D) price discrimination.

E) perfectly competitive firms.

75) Suppose the technology of an industry is such that the typical firm’s minimum efficient scale is 18 units per day at an average long-run cost of $1600 per unit.  If the total quantity demanded at a price of $1750 per unit is 16 units per month, the likely result would be

A) a competitive industry.

B) a cartel.

C) price discrimination.

D) a natural monopoly.

E) a concentrated oligopoly.

76) Suppose the technology of production is such that the typical firm’s minimum efficient scale is 1400 units per week at an average long-run cost of $9 per unit. If the total quantity demanded in this market at a price of $9 per unit is 22 million units per week, the likely result will be

A) a cartel.

B) price discrimination.

C) a natural monopoly.

D) a concentrated oligopoly.

E) a competitive industry.

77) If a competing firm is able to overcome an entry barrier of a monopolized industry, the demand curve of the single firm already in the industry will

A) shift to the right.

B) remain the same in spite of the entry of the other firm.

C) shift to the left.

D) become less elastic.

E) shift to the left and become more elastic.

78) A firm is best described as a natural monopoly if

A) there are no competing firms.

B) it holds an exclusive charter from the government.

C) its ATC curve is upward sloping.

D) its MC curve is downward sloping.

E) it can supply the entire market while minimizing its average costs.

79) The main argument of Joseph Schumpeter’s idea of “creative destruction” is that

A) the existence of monopolies leads to destruction of the environment.

B) short-run profits created by the existence of monopolies will lead to antitrust legislation, which will force the fragmentation of monopolies into competitive industries.

C) perfectly competitive industries are characterized by more productive innovation and productivity growth than monopolistic industries, which Schumpeter regarded as destructive.

D) monopoly profits lead to innovation in an effort to sustain those profits.

E) monopolies create profits for themselves at the expense of the destruction of consumer surplus.

80) A number of firms agreeing together to restrict output and thereby raise prices is known as

A) a monopoly.

B) a natural monopoly.

C) a cartel.

D) a barrier to entry.

E) an oligopoly.

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more