Which one of the following is not a possible barrier to entry high enough to keep competing firms out of a monopoly industry?
A) large economies of scale that result in a natural monopoly
B) The monopoly firm has control of a key resource necessary to produce a good.
C) a high concentration ratio
D) There are important network externalities in supplying a good or service.
C
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One way of reducing the moral hazard problem in the automobile insurance market is for drivers to
A) carry high deductibles. B) carry no deductibles. C) all have good driving records. D) never make any claims.
According to classical economists, inflation occurs when the annual rate of growth in the money supply
a. exceeds the annual rate of growth of full-employment real GDP b. equals the annual rate of growth of full-employment real GDP c. exceeds the annual rate of growth of money velocity d. is less than the annual rate of growth of money velocity e. is less than the annual rate of growth of full-employment nominal GDP