i. result in productive efficiency
ii. result in allocative efficiency
iii. are the basis for monopolies to exist
iv. apply in the United States to only to industries dominated by a single firm
both iii and iv
A patent or copyright is a barrier to entry based on:
ownership of a key input used in the production process
large economies of scale as output increases
widespread network externalities
government action to encourage and protect private research and development efforts
A natural monopoly, such as a local electricity provider, is the result of:
i. a firm owning or controlling a key input used in the production process
ii. long-run average total costs declining continuously as output increases
iii. long-run total costs declining continuously as output increases
iv. economies of scale existing
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Expert's answer
2014-11-27T13:11:22-0500
1. Barriers to entering an industry: iii. are the basis for monopolies to exist 2. A patent or copyright is a barrier to entry based on: d) government action to encourage and protect private research and development efforts 3. A ‘natural’ monopoly, such as a local electricity provider, is the result of: i. a firm owning or controlling a key input used in the production process
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