Question

In: Economics

Which of the following would most likely create the setting for an oligopoly? government grants Alex,...

Which of the following would most likely create the setting for an oligopoly?

government grants Alex, Trent, and Alyse each a patent for their respective molybdenum based electric car batteries

market demand is two or more times less than quantity needed to produce at the minimum of the AC curve

market demand is two or more times more than quantity needed to produce at the minimum of the MC curve

insurmountable technological difficulty associated with producing similar products acts as an effective barrier to entry

Intellectual property law is a body of law that includes

the right of inventors to produce their inventions

the right of inventors to sell their inventions

trademark, patent and trade secret legislation

copyright legislation, as well as all of the above

If monopolistic competitors must expect a process of entry and exit like perfectly competitive firms,

they will be unable to earn higher-than-normal profits in the short run.

they will wish to cooperate to make decisions about what price to charge.

they will wish to cooperate to make decisions about what quantity to produce.

they will be unable to earn higher-than-normal profits in the long run.

The two primary factors determining monopoly market power are the firm's

revenues and size of its customer base

demand curve and its cost structure

variable cost curve and its fixed cost structure

demand curve and level of wealth within its market

Solutions

Expert Solution

1. (a) government grants Alex, Trent, and Alyse each a patent for their respective molybdenum based electric car batteries.

An oligopoly is a market form wherein a market or industry is dominated by a small group of large sellers. If government grants exclusive patents to three firms, the patents will act as barriers to entry and the market will be concentrated.

2. (d) copyright legislation, as well as all of the above.

Intellectual property refers to the body of law that protects creative works, designs, and inventions.

3. (d) they will be unable to earn higher-than-normal profits in the long run.

If monopolistic competitors must expect a process of entry and exit like perfectly competitive firms, they will earn normal profits in the long run as in the case of perfect competition.

4. (b) demand curve and its cost structure.

Market power is the ability to affect the terms and conditions of exchange so that the price of a product is set by a single company (price is not imposed by the market as in perfect competition).


Related Solutions

Which of the following is most likely to be an oligopolist (a firm competing in the market structure known as oligopoly)?
Which of the following is most likely to be an oligopolist (a firm competing in the market structure known as oligopoly)?One of many salons in townA small wheat farmer who is a "price taker"One of only a few major video game console companies in a market, like SonyThe only electric utility company serving a city, like MG&E
1. Which of the following goods would be the most likely to be subject to a...
1. Which of the following goods would be the most likely to be subject to a government-imposed tax? A Cereal B Bottles of alcohol, such as whiskey and gin C Shoes 2. Which of the following is likely to have the largest elasticity of supply? A The producer of vanilla ice cream B The producer of yachts C A dentist 3. Assume that as your income increases, your consumption of burgers decreases. We can assume that your income elasticity of...
Which of the following would be most likely to increase the supply of loanable funds and...
Which of the following would be most likely to increase the supply of loanable funds and lead to low interest rates? a. Expansionary monetary policy that resulted in high rates of inflation. b. Constant policy shifts that generate uncertainty and reduce investment. c. Demographic shifts that increase the number of people in age categories with high saving rates relative to the number in age categories with a strong demand for loanable funds. d. Large budget deficits that push the government...
Which of the following would the board of directors of an organisation most likely need to...
Which of the following would the board of directors of an organisation most likely need to know as part of their organisation’s cyber security risk reporting framework: Select all that apply. 1. Cyber security budgets 2. Feedback on cyber security events 3. Leadership roles for cyber security 4. Links between cyber security objectives and organisational objectives 5. Officers responsible for making cyber security decisions 6. Vendor due diligence
In a sale of goods, which of the following would, LEAST LIKELY, create an EXPRESS WARRANTY...
In a sale of goods, which of the following would, LEAST LIKELY, create an EXPRESS WARRANTY under Section 2-313 of the U.C.C.:
Which of the following would most likely be classified as a current liability? A. Mortgage payable...
Which of the following would most likely be classified as a current liability? A. Mortgage payable B. Portion of long-term debt due within one year C. Two-Year notes payable D. Bonds payable
Which of the following would most likely cause both a decrease in the price of McDonalds’...
Which of the following would most likely cause both a decrease in the price of McDonalds’ Big Mac hamburgers and a decrease in the number sold? a. an increase in the supply of McDonalds’ Big Mac hamburgers b. an increase in the demand for McDonalds’ Big Mac hamburgers c. a decrease in the supply of McDonalds’ Big Mac hamburgers d. a decrease in the demand for McDonalds’ Big Mac hamburgers
Which of the following assets would most likely be listed last on a statement of financial...
Which of the following assets would most likely be listed last on a statement of financial position? Select one: a. Land. b. Cash. c. Accounts receivable. d. Equipment. 2. Which of the following will not cause a change in the owners' equity of a business? Select one: a. Purchase of land with cash. b. Withdrawal of cash by the owner. c. Sale of land at a profit. d. Losses from unprofitable operations. 3. Decreases in owners' equity are caused by:...
1. (a) Which of the following types of biomolecules would most likely be found embedded in...
1. (a) Which of the following types of biomolecules would most likely be found embedded in a phospholipid bilayer?
which of the following organisms would be most likely to fossilize? a common slug a common...
which of the following organisms would be most likely to fossilize? a common slug a common bird a rare bird a rare slug
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT