Which of the Following Prevents Potential Competitors from Entering a Monopolist's

question 168

Multiple Choice

Which of the following prevents potential competitors from entering a monopolist's market?

• A)legal restrictions
• B)diseconomies of scale
• C)product differentiation
• D)stable market demand
• E)rising marginal cost

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Definitions:

Intra-entity Transfer

Transactions of assets, services, or funds between divisions, departments, or affiliated entities within the same parent organization.

Equipment

Tangible property other than land or buildings that is used in operations, such as machinery, computers, vehicles, and furniture.

Cost of Goods Sold

The outlays directly connected to the making of goods a company markets, comprising both material and labor expenses.

Net Income

The remaining income of a company after subtracting all costs and taxes from its total income.