Which of the Following Is Most Likely to Act as a Barrier

question 30

Multiple Choice

Which of the following is most likely to act as a barrier to entry in an oligopoly?

• A)the profit earned by existing firms in the short run
• B)poorly defined property rights
• C)a well-established brand name
• D)a high price charged for the products
• E)a fall in the output produced by firms

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Definitions:

Separation of Powers

The division of governmental powers among independent branches to prevent the concentration of power and provide checks and balances.

Charles Beard

An influential American historian known for his interpretation of the economic interests that motivated the Founding Fathers in writing the Constitution.

Constitution

The basic rules and recognized examples based on which a state or different entity is administered.

Checks and Balances

A system in which different branches of government have powers that can limit or check the powers of the others, thus ensuring no single branch becomes too powerful.