Which of the following statements about barriers to entry is false?
A) They restrict entry into industries in which positive economic profits are being made.
B) They are somewhat lessened by the existence of patents.
C) They may be due to legal impediments such as licenses.
D) They may be due to a single firm controlling access to a natural resource or production process.
B
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An economist left her $100,000-a-year teaching position to work full-time in her own consulting business. In the first year, she had total revenue of $200,000 and business expenses of $100,000 . She made a(n):
a. economic profit. b. economic loss. c. implicit profit. d. accounting loss but not an economic loss. e. zero economic profit.
A breakthrough in technology is most likely to: a. reduce the labor needed to produce a given amount of output. b. decrease the demand for all goods and services in a country. c. increase the cost of production for a firm
d. reduce the availability of skilled workers. e. lower the standard of living in a country in the long run.