There are several types of barriers to entry that can create a monopoly. Which of the following barriers is the result of government action?
A) public franchise B) control of a key resource
C) economies of scale D) network externalities
Question 2
Refer to Figure 13-8. Based on the diagram, one can conclude that
A) some existing firms will exit the market. B) the industry is in long-run equilibrium.
C) new firms will enter the market. D) firms achieve productive efficiency.
