When a Market Has Barriers to Entry

question 67

Multiple Choice

When a market has barriers to entry,

• A) then in the long run it is possible for the firms to incur economic losses.
• B) then in the long run the only possible outcome for the firms to make zero economic profit.
• C) then in the long run it might be possible for the firms to make a positive economic profit.
• D) oligopolies cannot be created.
• E) the HHI almost always falls below 1,000.

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Definitions:

Provincial Agency

A government entity or organization established at the provincial level to perform a specific function or provide a specific service.

Closely Held Corporation

A type of corporation that is privately owned, with a small number of shareholders, typically involving family or close acquaintances.

Shareholder

An individual or entity that owns one or more shares of stock in a corporation, making them a partial owner of the company.

Negligent Acts

Conduct that falls below the standards of behavior established by law for the protection of others against unreasonable risk of harm.