One barrier to entry into a monopoly market is:
A. the existence of large economies of scale.
B. very large fixed costs relative to variable costs.
C. the high cost of required infrastructure for an industry.
D. All of these statements are true.
Answer: D
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A firm has the production function 
. The wage rate is $10 per unit of labor and the rental rate is $5 per unit of capital and the firm is going to spend $1000 on production.
i. Assuming that the firm is free to choose any level of K and L to emply, how much of each should it emply? How much output will they produce? ii. Now assume that once the firm has chosen its level of L and K, the level of K becomes fixed. If the price of K increases to $8 per unit, how many units of output can the firm now produce if it spends the same amount? iii. Once the firm reaches the long run again and is able to vary its level of K, how much should L and K should it employ in order to achieve its original level of output? How much will that level of production cost?
An increase in imports of clothing into the United States from India will benefit the ________ and hurt the
A. U.S. consumers; U.S. clothing producers. B. U.S. clothing producers; Indian clothing producers. C. U.S. consumers; Indian clothing producers. D. Indian consumers; Indian clothing producers.