If a "Certificate of Convenience and Public Necessity" Protects a Monopolist's

question 127

Multiple Choice

If a "certificate of convenience and public necessity" protects a monopolist's position, the barrier to entry this firm relies on is called

• A) a tariff.
• B) a government license.
• C) a patent.
• D) economies of scale.

---

Definitions:

Productivity

A measure of the efficiency of production, often quantified as the ratio of outputs to inputs in a production process.

Hindsight Bias

The tendency to believe, after an event has occurred, that one would have foreseen or predicted the event — commonly known as the "I-knew-it-all-along" effect.

Exaggerate

To make something seem larger, more important, better, or worse than it really is.

Foreseen

Anticipated or predicted based on existing knowledge or evidence.