The situation in the figure above creates a barrier to entry for ...

[cnetterville]

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

Question 2

The figure above shows the U.S. demand and U.S. supply curves for cherries. Suppose the world price of cherries is 2 per pound. At this price, U.S. consumption of cherries will equal
 
  A) 200,000 pounds.
  B) 400,000 pounds.
  C) 600,000 pounds.
  D) 800,000 pounds.
  E) 0 pounds.

[Zack0mack0101@yahoo.com]

Answer to Question 1

D

Answer to Question 2

A

[cnetterville]

TYSM

[smrtceo]

Excellent