Along the Downward-Sloping Demand Curve of Lifeguards at Local Public

question 126

Multiple Choice

Along the downward-sloping demand curve of lifeguards at local public pools,_____

• A)the wage paid to lifeguards is held constant.
• B)the number of lifeguards is held constant.
• C)the wage paid to lifeguards at private clubs is held constant.
• D)the admission price to these public pools decreases as the wage rate for lifeguards increases.
• E)the admission price to these public pools rises as the wage rate for lifeguards increases.

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Definitions:

Barriers To Entry

Economic or legislative obstacles that prevent new competitors from easily entering an industry or area of business.

Monopoly Power

The degree of power held by a singular entity to control prices or exclude competition within a market.

Natural Monopoly

A market condition where a single firm can supply a good or service to an entire market more efficiently than multiple firms due to high fixed or startup costs.

Economies Of Scale

The cost advantage that arises with increased output of a product, as fixed costs are spread over more units of production, reducing the cost per unit.