The situation in the figure above creates a barrier to entry for a second firm because
i. a second firm that produced as many kilowatt-hours as the first firm would see the market price fall beneath its cost and would incur an economic loss.
ii. a second firm that produced fewer kilowatt-hours than the first firm would have to charge a higher price and would not gain many customers.
iii. the first firm's average total cost curve indicates it has been given a patent for the product.
A) i only
B) ii only
C) iii only
D) i and ii
E) i and iii
D
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What happens in the secondary market?
A) secondary inputs like electricity are sold B) a corporate financial manager will raise funds for expansion of the firm C) newly issued claims are sold by the borrowing firm to the initial buyer D) already issued claims are sold from one investor to another
If the marginal propensity to consume is 0.75, then the multiplier equals
A. 1/0.75. B. 1/(1 - 0.25). C. 1/(1 - 0.75). D. 0.75.