Answered: A barrier to entry is ________________.…

A barrier to entry is ________________. a. illegal in most markets. b. none of these. c. anything that protects a firm from the arrival of new competitors. d. freedom to enter and exit.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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5. (5 points 654 Price and cost (dollars) B 10 SMC MR E 300 340 200 ATC Quantity The above graph is for a monopoly firm. The curve labelled "SMC" is the Marginal Cost curve, D Demand curve and MR Marginal Revenue curve, ATC average total cost curve. (a) What is the profit maximizing price and output? (b) At the profit maximizing price and output what is the average total cost? (c) At the profit maximizing price and output what is the amount of profit (in dollars) earned by this firm? Please show your calculations.
QUESTION 6 Which of the following is an example of a barrier to entry? O a. All other options are the examples of barriers to entry. O b. A pharmaceutical company invented a new drug to cure lung cancer and got patent. OC. An author just got a copy right for her newly published book. O d. A cable company owns the exclusive rights to provide cable services in a county. QUESTION 7 There is only one cable TV provider in a small town. The cable TV provider in that area will face O a perfect competition. O a monopoly. O a government-regulated price. O a price decided by the industry. QUESTION 8 For a monopolist a profit-maximizing quantity will be where their O marginal revenue is less than marginal cost. O marginal revenue is greater than marginal cost. O marginal revenue is equal to marginal cost. O average revenue is greater than the average cost.