One strategic barrier that may keep new firms out of a market is
a. producing where marginal cost equals marginal revenue
b. a low minimum efficient scale
c. bounded markup pricing
d. efficiency wages, which may make it impossible for new entrants to compete profitably
e. excess capacity, which may serve as a signal to new entrants to stay away
E
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In Sen's view, development is an economic process that should be assessed by material output measures such as GNI per capita.
a. true b. false
Economists estimated that the price elasticity of beer is -0.30 and the income elasticity of beer is 0.09. This means that
A) an increase in the price of beer will lead to an increase in revenue for beer sellers and beer is a normal good. B) a decrease in the price of beer will lead to an increase in revenue for beer sellers and beer is an inferior good. C) an increase in the price of beer will lead to a decrease in the quantity demanded of beer and beer is a luxury. D) an increase in the price of beer will increase the quantity demanded of beer and beer is a normal good.