Which of the Following Would Not Bar Entry into a Market

question 9

Multiple Choice

Which of the following would not bar entry into a market?

• A)control by a single firm of an essential resource
• B)the necessity of taking risks when starting a firm
• C)patents
• D)economies of scale
• E)government regulations limiting the number of firms in an industry

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Definitions:

Deductible

A sum specified in an insurance policy that the insured individual must pay before being compensated for a claim; deductibles reduce moral hazard.

Premium

The amount paid for an insurance policy, or the difference between the higher price paid for a fixed-income security above its face value.

Insurance Companies

Organizations that provide risk management by compensating for financial losses in exchange for premium payments.

Private Information

Information that is not publicly available and may give an individual or business a competitive advantage.