Question

1. Briefly describe 2 government-imposed barriers to entry that help larger firms avoid some competition, and then explain the impact that these government actions have on consumer prices.

2. Why does Accounting Profit exclude all other implicit costs except the implicit cost of depreciation?

3. As it specifically impacts consumers and producers, when is a product’s price in equilibrium?

4. Why does less available time to make a purchase coupled with fewer readily available substitutes for any given product usually make that product’s demand more inelastic?

5. Why are firms that operate in an oligopolistic market structure considered to be price makers (aka price searchers/price setters)?

Answer 1