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:

Paternalistic Ideology

A belief system that justifies the controlling behavior of those in power on the premise that it is for the benefit or protection of those under their authority, often without the consent or input of the latter.

Planter Aristocracy

A social and economic class comprising wealthy landowners who held numerous slaves to farm cash crops in the American South before the Civil War.

Planter Aristocracy

A social and economic class of wealthy landowners in the antebellum South who owned large plantations and numerous slaves, exerting significant political and social influence.

Economic Self-Interest

The motivation that drives individuals to pursue their own material wealth and benefit, often considered a fundamental economic principle.