If a Producer Wants a Monopoly with a Legal Barrier

question 3

Multiple Choice

If a producer wants a monopoly with a legal barrier to entry,how can this be done?
i.The producer can spend funds lobbying to attain passage of the legal barrier to entry.
ii.The producer can purchase an existing monopoly.
iii.The producer can make rent seeking expenditures.

• A) i and ii
• B) i and iii
• C) ii and iii
• D) i, ii, and iii
• E) None of the above are ways to acquire a monopoly with a legal barrier to entry.

---

Definitions:

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Gross Profit Percentage

A financial ratio that expresses the gross profit as a percentage of sales revenue, indicating the efficiency of production and cost management.

Cost of Goods Sold

Costs directly related to the creation of a company's sold products, involving expenses for materials and workforce.

Net Income

The total earnings of a company after subtracting all expenses from revenues, which includes costs, interest, taxes, and other expenditures.