A patent or copyright is a barrier to entry based on
A) widespread network externalities. B) ownership of a key necessary raw material.
C) large economies of scale as output increases. D) government action to protect a producer.
D
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Which of the following most closely approximates the conditions of a competitive price-searcher market?
a. the market for Grade A eggs, which is characterized by a large number of firms producing a homogeneous product b. the restaurant industry, which is characterized by firms producing a differentiated product in a market with low entry barriers c. local cable television service, where a licensed supplier competes with firms offering satellite service d. the market for jumbo aircraft, where one major domestic firm competes with one major foreign firm
If the price of clothing (which accounts for 5 percent of total expenditures in the CPI basket), rises by 10 percent in one year while the prices of all other goods remain constant, by how much will the CPI rise?
A. 0.5 percent B. 10 percent C. 5 percent D. 50 percent