Classify the following as a government-enforced barrier to entry, a banker to entry that is not government-enforced, or a situation that does not involve a barrier to entry. A patented invention A popular but easily copied restaurant recipe An industry where economies of scale are very small compared to the size of demand in the market A well-established reputation for slashing prices in response to new entry A well-respected brand name that has been carefully built up over many years

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Answer 1

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Chapter 9, Problem 1SCQ

Classify the following as a government-enforced barrier to entry, a banker to entry that is not government-enforced, or a situation that does not involve a barrier to entry.

A patented invention
A popular but easily copied restaurant recipe
An industry where economies of scale are very small compared to the size of demand in the market
A well-established reputation for slashing prices in response to new entry
A well-respected brand name that has been carefully built up over many years

Expert Solution & Answer

To determine

(a)

The classification of the situation based on the given categories.

Answer to Problem 1SCQ

A patent invention is a government enforced barrier to entry.

Explanation of Solution

A patent is a legal assurance by the government which allows the patent holder an exclusive right to use the invention. It acts as barrier to entry as no one else other than the patent owner can reap the benefits of the invention unless the owner decides to sell it or lease it to another party.

Economics Concept Introduction

Concept introduction:

Barrier to entry − The conditions or circumstances that prevent other firms from entering a particular industry are termed as barriers to entry. Such barriers can be either natural or government-enforced barriers.

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Use the following table to work Problems 5 to 9. Minnie's Mineral Springs, a single-price monopoly, faces the market demand schedule: Price Quantity demanded (dollars per bottle) 10 8 (bottles per hour) 0 1 6 2 4 3 2 4 0 5 5. a. Calculate Minnie's total revenue schedule. b. Calculate its marginal revenue schedule. 6. a. Draw a graph of the market demand curve and Minnie's marginal revenue curve. b. Why is Minnie's marginal revenue less than the price? 7. a. At what price is Minnie's total revenue maxi- mized? b. Over what range of prices is the demand for water from Minnie's Mineral Springs elastic? 8. Why will Minnie not produce a quantity at which the market demand for water is inelastic?

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Answer 2

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Chapter 9, Problem 1SCQ

Classify the following as a government-enforced barrier to entry, a banker to entry that is not government-enforced, or a situation that does not involve a barrier to entry.

A patented invention
A popular but easily copied restaurant recipe
An industry where economies of scale are very small compared to the size of demand in the market
A well-established reputation for slashing prices in response to new entry
A well-respected brand name that has been carefully built up over many years

Expert Solution & Answer

To determine

(a)

The classification of the situation based on the given categories.

Answer to Problem 1SCQ

A patent invention is a government enforced barrier to entry.

Explanation of Solution

A patent is a legal assurance by the government which allows the patent holder an exclusive right to use the invention. It acts as barrier to entry as no one else other than the patent owner can reap the benefits of the invention unless the owner decides to sell it or lease it to another party.

Economics Concept Introduction

Concept introduction:

Barrier to entry − The conditions or circumstances that prevent other firms from entering a particular industry are termed as barriers to entry. Such barriers can be either natural or government-enforced barriers.

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Answer 3

Textbook Question

100%

Chapter 9, Problem 1SCQ

Classify the following as a government-enforced barrier to entry, a banker to entry that is not government-enforced, or a situation that does not involve a barrier to entry.

A patented invention
A popular but easily copied restaurant recipe
An industry where economies of scale are very small compared to the size of demand in the market
A well-established reputation for slashing prices in response to new entry
A well-respected brand name that has been carefully built up over many years

Expert Solution & Answer

To determine

(a)

The classification of the situation based on the given categories.

Answer to Problem 1SCQ

A patent invention is a government enforced barrier to entry.

Explanation of Solution

A patent is a legal assurance by the government which allows the patent holder an exclusive right to use the invention. It acts as barrier to entry as no one else other than the patent owner can reap the benefits of the invention unless the owner decides to sell it or lease it to another party.

Economics Concept Introduction

Concept introduction:

Barrier to entry − The conditions or circumstances that prevent other firms from entering a particular industry are termed as barriers to entry. Such barriers can be either natural or government-enforced barriers.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

100%

Chapter 9, Problem 1SCQ

Classify the following as a government-enforced barrier to entry, a banker to entry that is not government-enforced, or a situation that does not involve a barrier to entry.

A patented invention
A popular but easily copied restaurant recipe
An industry where economies of scale are very small compared to the size of demand in the market
A well-established reputation for slashing prices in response to new entry
A well-respected brand name that has been carefully built up over many years

Expert Solution & Answer

To determine

(a)

The classification of the situation based on the given categories.

Answer to Problem 1SCQ

A patent invention is a government enforced barrier to entry.

Explanation of Solution

A patent is a legal assurance by the government which allows the patent holder an exclusive right to use the invention. It acts as barrier to entry as no one else other than the patent owner can reap the benefits of the invention unless the owner decides to sell it or lease it to another party.

Economics Concept Introduction

Concept introduction:

Barrier to entry − The conditions or circumstances that prevent other firms from entering a particular industry are termed as barriers to entry. Such barriers can be either natural or government-enforced barriers.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

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Answer 6

Textbook Question

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Answer 7

Expert Solution & Answer

To determine

(a)

The classification of the situation based on the given categories.

Answer to Problem 1SCQ

A patent invention is a government enforced barrier to entry.

Explanation of Solution

A patent is a legal assurance by the government which allows the patent holder an exclusive right to use the invention. It acts as barrier to entry as no one else other than the patent owner can reap the benefits of the invention unless the owner decides to sell it or lease it to another party.

Economics Concept Introduction

Concept introduction:

Barrier to entry − The conditions or circumstances that prevent other firms from entering a particular industry are termed as barriers to entry. Such barriers can be either natural or government-enforced barriers.

Answer 8

Expert Solution & Answer

To determine

(a)

The classification of the situation based on the given categories.

Answer to Problem 1SCQ

A patent invention is a government enforced barrier to entry.

Explanation of Solution

A patent is a legal assurance by the government which allows the patent holder an exclusive right to use the invention. It acts as barrier to entry as no one else other than the patent owner can reap the benefits of the invention unless the owner decides to sell it or lease it to another party.

Economics Concept Introduction

Concept introduction:

Barrier to entry − The conditions or circumstances that prevent other firms from entering a particular industry are termed as barriers to entry. Such barriers can be either natural or government-enforced barriers.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

(a)

The classification of the situation based on the given categories.

Answer 12

Answer to Problem 1SCQ

A patent invention is a government enforced barrier to entry.

Answer 13

Explanation of Solution

A patent is a legal assurance by the government which allows the patent holder an exclusive right to use the invention. It acts as barrier to entry as no one else other than the patent owner can reap the benefits of the invention unless the owner decides to sell it or lease it to another party.

Answer 14

Economics Concept Introduction

Concept introduction:

Barrier to entry − The conditions or circumstances that prevent other firms from entering a particular industry are termed as barriers to entry. Such barriers can be either natural or government-enforced barriers.

Answer 15

Ch. 9 - Classify the following as a government-enforced...Ch. 9 - Classify the following as a government-enforced...Ch. 9 - Suppose the local electrical utility, a legal...Ch. 9 - If Congress reduced the period of patent...Ch. 9 - Suppose demand for a monopolys product falls 50...Ch. 9 - Imagine a monopolist could charge a different...Ch. 9 - How is monopoly different from perfect...Ch. 9 - What is a barrier to entry? Give some examples.Ch. 9 - What is a natural monopoly?Ch. 9 - What is a legal monopoly?

Answer to Problem 1SCQ

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