Question

In: Economics

21. Which of the following is not a barrier to entry? a. Patent laws b. Decreasing...

21. Which of the following is not a barrier to entry?

a. Patent laws

b. Decreasing marginal costs

c. Economies of scale

d. Licensing

22.Natural barriers to entry _______

a. include patent laws and exclusive franchises

b. must be sustained by government regulation

c. result from an increasing long-run average cost curve

d. most commonly arise through economies of scale

23. A monopolist faces ________.

a. a horizontal demand curve at the market price

b. several close substitutes for its product or service

c. a vertical demand curve

d. the market demand curve

24. Which of the following statements is true?

a. A perfectly competitive firm is a price-maker because it faces a downward-sloping demand curve.

b. A perfectly competitive firm is a price-taker because it faces a downward-sloping demand curve.

c. A monopoly is a price-maker because it faces a downward-sloping demand curve.

d. A monopoly is a price-taker because it faces a downward-sloping demand curve.

Expert Solution

21. Option D
Explanation: Licensing is a technique of business expansion and not market barrier.

22. Option D
Explanation: Economies of scale can result to natural monopolies.

23. Option D.

Explanation: The monopolist is the only firm in the industry.

24. Option C

Explanation: A monopolist faces a downward sloping demand curve.

Rahul Sunny answered 2 years ago

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