Which of the following is NOT an example of a natural barrier to entry?
A) A software firm cannot get a loan to fund development of a new computer operating system.
B) A manufacturing firm has to buy a rare metal from the one company that controls most of the worldwide supply.
C) A small soft-drink company struggles to produce its product as cheaply as its much larger competitor can.
D) A single utility firm can deliver services to every home in an area more efficiently than a cluster of competing firms could.
E) A patent gives a pharmaceutical firm the exclusive right to manufacture and sell an anticancer drug.
Correct Answer:
Verified
Q9: Raising capital to compete against an entrenched
Q10: Ash is the preferred wood to be
Q11: A monopoly
A) always makes a profit.
B) can
Q12: Economies of scale exist
A) only for monopolists.
B)
Q13: Economies of scale is an example of
A)
Q15: Monopolists
A) enjoy market power for their specific
Q16: Which of the following is NOT a
Q17: Control of resources is an example of
A)
Q18: Three natural barriers to entry are
A) control
Q19: The best way to limit competition is
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