Most economists are concerned about entry barriers. Why is this so important to them?
What will be an ideal response?
Entry barriers enable a firm to earn long-run profits. Furthermore, when there are entry barriers in a market, the industry output does not achieve allocative or productive efficiency, resulting in deadweight losses.
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Countries with high rates of economic growth tend to have
A) a lower life expectancy at birth. B) low rates of technological advancement. C) a declining incidence of business cycle fluctuations. D) a labor force that is more productive.
If Mateo is paid $25,000 to sell his crop of tomatoes even though he would have been willing to have sold the crop for as little as $20,000, this indicates that
a. Mateo received no producer surplus from the transaction. b. Mateo received $5,000 of producer surplus from the transaction. c. Mateo received $20,000 of producer surplus from the transaction. d. Mateo received $25,000 of producer surplus from the transaction.