The Figure Above Shows a Firm's Demand and Average Total

question 296

Multiple Choice

The figure above shows a firm's demand and average total cost curves.
-The situation in the figure above creates a barrier to entry for a second firm because
i.a second firm that produced as many kilowatt-hours as the first firm would see the market price fall beneath its cost and would incur an economic loss.
ii.a second firm that produced fewer kilowatt-hours than the first firm would have to charge a higher price and would not gain many customers.
iii.the first firm's average total cost curve indicates it has been given a patent for the product.

• A) i only
• B) ii only
• C) iii only
• D) i and ii
• E) i and iii

---

Definitions:

Infantile Amnesia

The phenomenon where adults are unable to recall memories from early childhood, typically before the age of 3 or 4.

Imprinting

A form of rapid learning that occurs in some animals shortly after birth or hatching, enabling them to recognize their parent or caregiver.

Attachment

A profound and lasting emotional connection that links one individual to another, transcending both time and distance.

Aggression

Any physical or verbal behavior intended to hurt or destroy.