Which One of the Following Is Not a Possible Barrier

question 149

Multiple Choice

Which one of the following is not a possible barrier to entry high enough to keep competing firms out of a monopoly industry?

• A)The monopoly firm has control of a key resource necessary to produce a good.
• B)There are important network externalities in supplying a good or service.
• C)large economies of scale that result in a natural monopoly
• D)a high concentration ratio

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Definitions:

Profit Maximizing

refers to a firm's goal of achieving the highest possible profit, where marginal costs equal marginal revenue, guiding pricing and production decisions.

Perfectly Competitive

A market configuration where numerous small businesses are present, with each selling identical items, coupled with the absence of entry or exit hurdles and complete transparency of information among consumers and vendors.

Optimal Output

The level of production that results in the highest possible profit for a firm, determined by the point where marginal cost equals marginal revenue.

Short-Run Costs

Expenses that vary directly with the level of output in the short term, where at least one input is fixed.