Large Barriers to Entry in the Gas Station Business Explain

question 93

Multiple Choice

Large barriers to entry in the gas station business explain why the two only gas stations in a small town:

• A)can earn an economic profit in the long run.
• B)must produce at the minimum average total cost in the long run.
• C)have no fixed costs in the long run.
• D)must produce a level of output such that MR = MC in order to maximize their profit.

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Definitions:

Termination Statement

An amendment to a financing statement which states that the debtor has no obligation to the secured party.

Financing Statement

A Financing Statement is a document filed to give public notice of a secured party's interest in the personal property of a debtor, used mainly in secured transactions.

Consumer Good

A product or commodity that is produced and purchased to satisfy the personal or family needs of the consumer.

Secured Interest

A legal claim or lien on assets or property, granted to a lender as security for the repayment of a debt, giving the lender rights to the collateral if the debt is not repaid.