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Q38 The manufacturing of microprocessors is only efficient when carried out in operations of a very large magnitude. Which of the following options best describes this barrier to entry? a) Predatory pricing strategy b) Ownership of natural resources c) Legal barrier d) Economy of scale .plox An

Q38 The manufacturing of microprocessors is only efficient when carried out in operations of a very large magnitude. Which of the following options best describes this barrier to entry? a) Predatory pricing strategy b) Ownership of natural resources c) Legal barrier d) Economy of scale .plox An

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Need answers #38 thru 42
Q39 In the small island nation of Castaway Atoll, there is only one movie theater: VideoPlex. An Q38 The manufacturing of microprocessors is only efficient when carried out in operations of a very large scale magnitude. Which of the following options best describes this barrier to entry? a) Predatory pricing strategy b) Ownership of natural resources c) Legal barrier d) Economy of scale Crepreneur considers building and operating a rival movie theater, The entrepreneur receives a message om the owner of VideoPlex: "If you choose to build this movie theater, I will significantly lower my prices in response, making it impossible for you to make any profit whilst competing with me." Upon learning ns, the entrepreneur decides not to enter the market, WWhich of the following options best describes this barrier to entry? a) Predatory pricing strategy b) Ownership of natural resources c) Legal barrier d) Economy of scale CHO Tn the early 1900's, the organization De Beers was in possession of 90% of the world's diamond supplies. Which of the following options best describes this barrier to entry? a) Predatory pricing strategy b) Ownership of natural resources c) Legal barrier d) Economy of scale Q41 What is the primary advantage of the patenting system from society's perspective? Hint: Use class notes, beware of Google as it answers this question from the firm's perspective. a) Firms and inventors make larger profits. b) Consistent record-keeping leads to better quality and dissemination of information. c) Allows innovations to move faster from 'design' to 'production' through economy of scale. d) Incentivizes technological advancement by granting monopoly profits to innovators. Q42 What is the primary disadvantage of the patenting system from society's perspective? Hint: Use class notes, beware of Google as it answers this question from the firm's perspective. a) Excessive administration costs place a financial burden on the government/taxpayers. b) Centralized information network makes it easier for competitors to steal ideas. c) Consumers are forced to pay monopoly prices on newly innovated products. d) Patent clerks and lawyers are valuable resources that could be used elsewhere in societ
Transcribed Image Text:Q39 In the small island nation of Castaway Atoll, there is only one movie theater: VideoPlex. An Q38 The manufacturing of microprocessors is only efficient when carried out in operations of a very large scale magnitude. Which of the following options best describes this barrier to entry? a) Predatory pricing strategy b) Ownership of natural resources c) Legal barrier d) Economy of scale Crepreneur considers building and operating a rival movie theater, The entrepreneur receives a message om the owner of VideoPlex: "If you choose to build this movie theater, I will significantly lower my prices in response, making it impossible for you to make any profit whilst competing with me." Upon learning ns, the entrepreneur decides not to enter the market, WWhich of the following options best describes this barrier to entry? a) Predatory pricing strategy b) Ownership of natural resources c) Legal barrier d) Economy of scale CHO Tn the early 1900's, the organization De Beers was in possession of 90% of the world's diamond supplies. Which of the following options best describes this barrier to entry? a) Predatory pricing strategy b) Ownership of natural resources c) Legal barrier d) Economy of scale Q41 What is the primary advantage of the patenting system from society's perspective? Hint: Use class notes, beware of Google as it answers this question from the firm's perspective. a) Firms and inventors make larger profits. b) Consistent record-keeping leads to better quality and dissemination of information. c) Allows innovations to move faster from 'design' to 'production' through economy of scale. d) Incentivizes technological advancement by granting monopoly profits to innovators. Q42 What is the primary disadvantage of the patenting system from society's perspective? Hint: Use class notes, beware of Google as it answers this question from the firm's perspective. a) Excessive administration costs place a financial burden on the government/taxpayers. b) Centralized information network makes it easier for competitors to steal ideas. c) Consumers are forced to pay monopoly prices on newly innovated products. d) Patent clerks and lawyers are valuable resources that could be used elsewhere in societ
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