MyLab Economics with Pearson eText -- Access Card -- for Principles of Microeconomics
17th Edition
ISBN: 9780134081168
Author: CASE, Karl E.; Fair, Ray C.; Oster, Sharon E.
Publisher: PEARSON
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Chapter 13, Problem 2.10P
To determine
Explaining the concept lowering elasticity of demand and building barriers to entry.
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Question 3
Which of the following is NOT an example of a barrier to entry?
Group of answer choices
A musician obtains a copyright for her original song.
An entrepreneur opens a popular new restaurant.
A pharmaceutical company obtains a patent for a specific high blood pressure medication.
Mighty Mitch’s Mining Company owns a unique plot of land in Tanzania, under which lies the only large deposit of Tanzanite in the world.
List several reasons that monopolies exist,and explain how each causes barriers to entry
The following are examples of Barriers for Entry that could lead to Monopoly power, EXCEPT:
Question 21 options:
Limited demand
Economies of Scale
Technological innovations
Predatory Pricing
Chapter 13 Solutions
MyLab Economics with Pearson eText -- Access Card -- for Principles of Microeconomics
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- If you were developing a product (like a web browser) for a market with significant barriers to entry, how would you try to get your product into the market successfully?arrow_forwardSuppose, Pfizer Company is the only company allowed by the Sultanate government to sell COVID vaccine in Oman. According to you, what type of market Pfizer Company is having in Oman? a. Monopoly market b. Monopolistic market c. Competitive market d. Oligopoly marketarrow_forwardWhich of the following is not an example of an entry barrier? Group of answer choices Capital needed to start business. Government licensing or franchising. Low production costs. Strong brand recognition. All of the above are barriers to entry.arrow_forward
- Monopolies cause a lot of deadweight losses. Describe way through which policy makers can respond to inefficiencies caused by monopolies in an economy. List potential problems associated with each of these policy response mechanisms and the portfolio of the factors that you have consultedarrow_forwardGive an example of entry barriers. Do entry barriers provide an opportunity for businesses to exploit consumers, or do entry barriers reflect businesses with sustained histories of providing good value to customers?arrow_forwardAnswer the following: Patents awarded to pharmaceutical firms serve as barriers to entry. Why would the government create a barrier to entry for these companies? After the patent held for a name brand pharmaceutical expires, competitors can produce identical generic drugs. Even after generics are introduced, name brand pharmaceuticals often remain significantly cheaper. Explain how a firm can continue to charge more for a name brand drug.arrow_forward
- can you find examples of monopolies or near monopolies whose position can be attributed to public intervention? Elaborate on possible costs of monopoly in those cases.arrow_forwardAnswer all the questions: Identify the market structure that is characterized by a single seller Identify the market structure that is characterized by each seller selling identical products. Identify the type of elasticity that applies to a demand curve for a single firm in a perfectly competitive market Explain why the demand curve for a monopolist is inelastic. Identify two ways governments try to reduce the market power of monopoliesarrow_forwardUsing the Monopoly model, show using diagrams how a monopolist may sustain abnormal profits for the indefinite future. Should the competition commission litigate against firms who have a dominant market position? In your answer, make sure you use a diagram, list the assumptions for the model, and give examples of real world markets that may be dominated by monopolists. The diagram used should be your own and not taken from another source.arrow_forward
- What are the three reasons that a market might have a monopoly? Give two examples of monopolies and explain the reasons for each.arrow_forwardMonopolies are viewed differently by economists and businesspersons. Which of the following would likely be most important to a businessperson when thinking about monopolies? Check all that apply. The quantity enjoyed by consumers in a market with monopoly versus competitive industries. The consumer surplus that results from monopoly compared to competitive industries. Comparing and contrasting consumer demand found in monopoly and competitive industries. The specifics of how a group of local roofers founded an association to seek government licensing requirements for all roofers.arrow_forwardDiscuss monopoly markets and the ethical weaknesses of monopolies.arrow_forward
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