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

Economics

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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.

Economics

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.

Economics