Economies of scale will create a barrier to entry in an oligopoly industry when
A) a firm's minimum efficient scale occurs where long-run average total costs are constant.
B) the typical firm's long-run average total cost curve reaches a minimum at a level of output that is a small fraction of total industry sales.
C) the industry's four-firm concentration ratio is less than 40 percent.
D) the typical firm's long-run average total cost curve reaches a minimum at a level of output that is a large fraction of total industry sales.
D
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Consider the following pairs of items:
a. shampoo and conditioner b. iPhones and earbuds c. a laptop computer and a desktop computer d. beef and pork e. air-travel and weed killer Which of the pairs listed will have a negative cross-price elasticity? A) a and b only B) c and d only C) e only D) a, b, and c only
Which of the following is an example of an undesirable side effect of the operation of the market mechanism?
a. negative externalities b. comparative advantages c. abstractions d. productivity growth