Economists Generally Criticize High Barriers to Market Entry Because

question 120

Multiple Choice

Economists generally criticize high barriers to market entry because

• A) the ability of consumers to discipline producers is weakened.
• B) unregulated monopolists and oligopolists can often gain by increasing output and raising price.
• C) legal barriers to entry will encourage firms to "invest" resources in developing highly desired products that consumers are willing to pay more for.
• D) entry barriers are popular with consumers but not businesses.

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Definitions:

Margin of Error

An expression of the amount of random sampling error in a survey's results, which describes the range that the true value lies within with a certain level of confidence.

Confidence Coefficient

The probability level, associated with a confidence interval, that the true parameter lies within the interval.

Interval Estimation Procedure

A method of estimating the range of values where a population parameter lies, based on sample statistics.