1. A copyright creates a monopoly by restricting ________.
A) demand for the product
B) the prices that can be charged
C) entry into the market
D) the number of creators and inventors

2. When natural or legal forces work to protect a firm from potential competitors, the market is said to have ________.
A) restricted competition
B) non-competitive entry
C) non-competitive supply
D) barriers to entry

3. This type of firm would likely operate as a monopoly
A) one of the few U.S. auto makers.
B) AT&T long distance phone service.
C) the local water company.
D) one of many U.S. wheat farmers.

4. A barrier to entry is

A) a necessary condition for perfect competition.
B) the result of highly elastic demand.
C) a natural or legal impediment that makes it difficult for new firms to enter a market.
D) a brick wall that a firm places around its corporate headquarters.

5.If economies of scale allow one cable TV firm to supply the entire market at the lowest possible cost, then this company is
A) a monopoly, but not a natural monopoly.
B) a legal monopoly.
C) not a monopoly.
D) a natural monopoly.

Answer rating: 100% (QA)

1 C Entry into the market 2 D Barrier... View the full answer