The advantages that arise from economies of scale make entry difficult for new firms. As a result, monopolies and oligopolies are often associated with __________ and ___________
a. b and e
b. low costs; high prices
c. low costs; low prices
d. antitrust; laissez-faire
e. competition; high prices
B
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Refer to the given data. With a $1-per-unit tariff, price and total quantity sold will be:
Answer the question on the basis of the following domestic supply and demand schedules for a product. Suppose that the world price of the product is $1.
A. $3 and 7 units.
B. $5 and 2 units.
C. $1 and 16 units.
D. $2 and 11 units.
The principle of comparative advantage indicates that mutually beneficial international trade can take place only when
A. transportation costs are almost zero. B. tariffs are eliminated. C. a country can produce more of some product than other nations can. D. relative costs of production differ between nations.