Business, 19.12.2019 07:31 adiaz97

1. which of the terms below is defined as "anything that keeps new firms from entering an industry in which firms are earning economic profits"?

a. economies of scale
b. game theory
c. oligopoly
d. barriers to entry
2. economies of scale exist when a firm's average costs fall as it output.

a. short-run; decreases
b. long-run; increases
c. long-run; decreases
d. short-run; increases
3. which of the following terms is a barrier to entry?

a. patents
b. economies of scale
c. ownership of a key input
d. all of the above.

Answers: 1

Show answers

Answers

Answer from: serehnatyras0808

1. D. barriers to entry

2. B. long-run; increases

3. D. All of the above

Explanation:

Anything that keeps new firms from entering an industry in which firms are earning economic profits is known as a barrier to entry.

When an industry have high barriers to entry, it is difficult for new firms to enter into the industry. Therefore, firms in an industry with high barriers to entry would continue to earn economic profit.

A firm earns economic profit where price is greater than average total cost.

An example of an industry with high barriers to entry are monopolies and oligopolies.

Monopolies are industries where there is only one firm operating in the industry.

Oligopolies are industries where there are only few firms operating in the industry.

A monopoly or oligopoly can arise for the following reasons:

1. Economies of scale : in the long run, when total average cost falls as output increases, the firm is said to be experiencing economies of scale. A firm can experience economies of scale because of its large size. The large size of the firm makes the firm enjoy discounts because of bulk buying or they borrow at lower costs because of their large size.

2. Ownership of a key input: A monopoly can arise if the firm owns a key input needed in the production process. Ownership of a key input prevents other firms from entering into the industry as they do not have assess to the input.

3. Patents: Patents are rights given to an inventor to prevent others from using, selling or making their invention for a period of time. When a firm makes an invention and gets a patent, it prevents other firms from entering into the industry and therefore the firm with the patent can function as a monopoly for the duration where the patent is effective.

At the other end of the spectrum is a perfect competition where there are no barriers to entry or exit of firms into the industry. Therefore, there are many sellers in the industry and the firms do not earn economic profit in the long run.

I hope my answer helps you.

Answer from: Quest

so i don't know what video you're talking about, but here's some stuff steve jobs gave as advice.

- love what you do.

- the worst thing that could happen might turn out to be the best thing that could happen.

- follow your heart and trust it knows where it's going.

Answer from: Quest

whats the question fjefjejfejfegrgrgrg

Another question on Business

Business, 22.06.2019 19:00

Tri fecta, a partnership, had revenues of $369,000 in its first year of operations. the partnership has not collected on $45,000 of its sales and still owes $39,500 on $155,000 of merchandise it purchased. there was no inventory on hand at the end of the year. the partnership paid $27,000 in salaries. the partners invested $48,000 in the business and $23,000 was borrowed on a five-year note. the partnership paid $2,070 in interest that was the amount owed for the year and paid $9,500 for a two-year insurance policy on the first day of business. compute net income for the first year for tri fecta.

Answers: 2

Answer

Business, 22.06.2019 20:00

Edna gomez is the founder of the restaurant chain good and green. she ensures that the products in her stores are ethically and responsibly sourced. most products are therefore 100 percent organic and all packaging is manufactured from recycled material. also, her company sources ingredients from farms within 100 miles from her locations. edna's belief is that her restaurants should be able to support the community at large. which of the following terms best describes edna gomez? a. headhunter b. category captain c. social entrepreneur d. trade creditor

Answers: 3

Answer

Business, 22.06.2019 21:20

Afamily wishes to save for future college expenses. which financial tool should the family invest in?

Answers: 1

Answer

Business, 23.06.2019 00:00

Which example would the government consider as intellectual property? a. product design that contains a hologram of the logo of the company b. a copy of a famous artist’s painting in a new medium c. a plant species discovered in the united states for the first time d. a method of production that is common to an entire industry e. a discount structure offered to the customer at a store

Answers: 3

Answer

You know the right answer?

1. which of the terms below is defined as "anything that keeps new firms from entering an industry i...

Questions