Which of the following is the reason why pharmaceutical firms are not monopolistically competitive?
A. Pharmaceutical firms sell differentiated products.
B. There are many buyers in the market.
C. There are many sellers in the market.
D. There are barriers to entry in the market, like patents.
Answer: D
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Horizontal merger occurs when
A) two firms merge where one had sold its output to the other as an input. B) the merger moves the combined firm onto the horizontal portion of its long-run average cost curve. C) two firms merge where each is about the same size. D) two firms producing a similar product merge.
An individual with a diversified stock portfolio consists of
A. stocks of firms listed on the New York Stock Exchange. B. financial assets purchased from several different stock brokers. C. financial assets comprised of different types of firms and locations. D. corporate bonds with varying maturity dates.