Which of the Following Is a Common Barrier to Entry
Which of the following is a common barrier to entry in a monopoly market?
A)Economic profit of the monopolist.
C)A rising long-run average total cost curve.
D)Economies of scale.
A firm can take advantage of economies of scale through
A)Investment decisions to increase capacity.
B)A production decision to increase capacity.
C)Investment decisions to reduce capacity.
D)A production decision to increase output.
Reductions in minimum average costs that come about through increases in the size of plants and equipment are called
A)Barriers to entry.
B)Economies to monopoly power.
C)Economies of scale.
D)Diseconomies of entry.
Any firm that has economies of scale will
A)Try to spread production over many plants.
B)Be able to produce at a lower unit cost as it increases production.
C)Face an upward-sloping long-run average total cost curve.
D)Prefer to produce a small amount of total industry output.