In the small Caribbean nation of Jamaica, large barriers to entry in the sugar industry explain why the two sugar producers in the country:
A)can earn an economic profit in the long run.
B)must produce at the minimum average total cost in the long run.
C)have no fixed costs in the long run.
D)must produce a level of output such that MR = MC to maximize their profit.

Question

Quizplus · Accepted Answer

Large barriers to entry prevent new competitors from entering the market, allowing the existing producers to maintain economic profits in the long run.

In the Small Caribbean Nation of Jamaica, Large Barriers to Entry