Patents, quotas, tariffs, and government licensing can all create barriers to entry into oligopoly industries
a. True
b. False
Indicate whether the statement is true or false
True
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The price elasticity of demand is calculated as:
A) the change in price divided by the change in quantity demanded. B) the change in quantity demanded divided by the change in price. C) the percentage change in price divided by the percentage change in quantity demanded. D) the percentage change in quantity demanded divided by the percentage change in price.
According to the above figure, if steel mills are charged an effluent fee in order to bear the cost of pollution, what happens to the equilibrium price and equilibrium quantity?
A) They are unchanged. B) They change from P1 and Q1 to P2 and Q2. C) They change from P2 and Q2 to P1 and Q1. D) The equilibrium price increases from P1 and P2, but the equilibrium quantity is unchanged.