Suppose That It Requires a Special License in Order to Operate

question 133

Multiple Choice

Suppose that it requires a special license in order to operate a firm in a certain type of industry.In addition,suppose that firms that hold such licenses are able to sell them for a high price.Which of the following statements is true?

• A)The firms in this industry must all be franchised.
• B)This is a typical monopolistically competitive market in which there are no economic profits in the long run.
• C)The government that issued the original licenses will be willing to issue more.
• D)There is free entry by new firms into this industry.
• E)Most firms currently in the industry are earning economic profits.

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Definitions:

Circumflex Branch

A branch of the coronary artery that supplies blood to the lateral and posterior surfaces of the left atrium and left ventricle of the heart.

Plateau

A state of little or no change following a period of activity or progress, often used in contexts like physical fitness, learning, and growth curves.

Cytoplasm

The jelly-like substance within a cell, excluding the nucleus, containing organelles, where various cellular processes occur.

Action Potential

A rapid, temporary change in the electrical charge of a neuron's membrane, facilitating the transmission of signals.