Which one of the following is not a possible barrier to entry high enough to keep competing firms out of a monopoly industry?
A) The monopoly firm has control of a key resource necessary to produce a good.
B) There are important network externalities in supplying a good or service.
C) large economies of scale that result in a natural monopoly
D) a high concentration ratio
Answer: D
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A country with a comparative advantage in the production of a good will ________ production of the good and ________
A) increase; import the good B) not change; import the good C) decrease; export the good D) decrease; import the good E) increase; export the good
Which of the following is a normative economic statement?
A) Falling global demand for pesticides has led to decreases in the price of pesticides. B) With falling mortgage rates and falling unemployment rates, the number of new homes being built has increased. C) The state of Florida's unemployment rate dropped when several large companies relocated to the Miami area. D) Global warming should be at the top of every economic agenda.