
If there are barriers to entry into a market,it is possible for the existing firm(s) to earn positive economic profits.All of the following explain this except:
A) new firms cannot enter to take advantage of the profits.
B) resource immobility.
C) it is possible for a firm in this situation to charge any price it wants and thus preclude anyone else from entering.
D) competition does not erode profits the way it would under perfect competition.
Correct Answer:
Verified
Q2: All of the following are possible characteristics
Q3: Use Figure 8.1, which represents the situation
Q4: Which of the following is not true
Q5: If an industry is characterized by economies
Q6: Which of the following barriers to entry
Q7: In its effort to maximize economic profit,a
Q8: Which of the following statements is correct?
A)The
Q9: Which of the following statements regarding a
Q10: Which of the following statements about barriers
Q11: Which of the following barriers to entry
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents