Provide two examples of a government barrier to entry
What will be an ideal response?
1. A patent or copyright which gives an individual or a firm the exclusive right to produce a product for a given period of time, for example, a patents for pharmaceutical drugs such as the anti-depressant, Prozac, manufactured by Eli Lilly.
2. A public franchise which makes it the exclusive legal producer of a good or service, for example, PG&E is the sole provider of gas and electric utilities in northern California.
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All else constant, as more firms substitute alternative materials, e.g., plastic, for copper, the market price of copper would be expected to:
A) increase. B) stay the same. C) decrease. D) cannot be determined with the information given.
Which of the following would not be an example of an oligopolistic industry?
a. light bulbs b. convenience stores c. aircraft d. breweries