When a Market Has Barriers to Entry

question 237

Multiple Choice

When a market has barriers to entry,

• A)then in the long run it is possible for the firms to incur economic losses.
• B)then in the long run the only possible outcome for the firms is zero economic profit.
• C)then in the long run it might be possible for the firms to make economic profits.
• D)oligopolies cannot be created.
• E)the HHI almost always falls below 1,000.

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Definitions:

Duplex Mind

A concept denoting the existence of two systems within the human mind: one that is fast and automatic, and another that is slow and deliberative.

Deliberate System

A cognitive process that is slow, analytical, and effortful, often associated with rational decision-making.

Automatic System

Cognitive processing that occurs subconsciously and effortlessly, often responsible for quick judgments and reactions.

Automatic System

An unconscious, fast, and often involuntary process of information processing in the brain, which contrasts with deliberate and effortful processing.