Author Question: High barriers to entry protect the market power of existing firms and discourage the formation of ... (Read 97 times)

Yolanda · **on:** Jun 30, 2018

High barriers to entry protect the market power of existing firms and discourage the formation of firms which:
a. invest heavily in research and development activities.
b. use illegal procedures to capture the market.
c. are inefficiently small and cannot realize economies of scale.
d. are large enough to dominate the existing firms.

Question 2

A monopolist's supply curve cannot be derived directly from its marginal cost curve as in the case of a competitive firm.
a. True
b. False
Indicate whether the statement is true or false