To have a monopoly in an industry there must be
A) barriers to entry so high that no other firms can enter the industry.
B) a patent or copyright giving the firm exclusive rights to sell a product for 20 years.
C) an inelastic demand for the industry's product.
D) a public franchise, making the monopoly the exclusive legal provider of a good or service.
Answer: A
You might also like to view...
Which of the following is an example of scarcity, rather than shortage?
a) A popular toy is sold out during the busy holiday season b) You have spent your last penny and payday is a week away c) A person wants an endless supply of everything but cannot have it d) Gasoline was rationed in America during World War II
Which of the following would shift a nation's production possibilities frontier outward?
A) an increase in demand for the nation's products B) discovering a cheaper way to convert sunshine into electricity C) a decrease in the unemployment rate D) a law requiring workers to retire at age 50