Which of the following might be a barrier to entry for a lumber company?
a. the development of a more efficient electric saw
b. a competitor going bankrupt because of mismanagement
c. a government restriction on logging
d. a rise in the popularity of furniture made of maple
Ans: c. a government restriction on logging
Economics
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In an increasing-cost industry the long-run supply curve is upward sloping
Indicate whether the statement is true or false
Economics
Suppose the supply of product X is perfectly inelastic. If there is an increase in the demand for this product, equilibrium price:
A. will decrease but equilibrium quantity will increase. B. and quantity will both decrease. C. will increase, but equilibrium quantity will decline. D. will increase, but equilibrium quantity will be unchanged.
Economics