What do economies of scale, the ownership of essential raw materials, and patents have in common?
A. They are all barriers to entry.
B. They all help explain why the long-run average cost curve is U-shaped.
C. They all help explain why a monopolist's demand and marginal revenue curves coincide.
D. They must all be present before price discrimination can be practiced.
Answer: A
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A market survey conducted by an electronics manufacturer reported a year on year growth in the sale of television sets, along with an increase in the selling price. Which of the following could be a likely cause for this situation?
a. A decrease in supply b. An increase in demand c. A decrease in demand d. An exception to the law of demand e. An increase in supply
Which of the following is a non-price determinant of supply?
A) the price of related goods consumers may buy B) technological advances in production C) consumers' incomes D) the number of consumers