Question

Part 1: List 5 Barriers to entry into a market

1) _____________________________________             2) _____________________________________

3) _____________________________________             4) _____________________________________

5) _____________________________________

Complete the following calculations

Quantity	Price	Total Revenue	Marginal Revenue
0	$22
1	$20
2	$18
3	$16
4	$14
5	$12
6	$10
7	$8
8	$6

Fill in the blanks

A) ____________   ____________ is the ability of a seller or a buyer to affect market price.

B) ____________   ____________ is the change in total revenue from selling one additional unit of output.

C) ____________ to entry are factors that block the entry of new firms into a market.

D) ____________ is a firm that is the lone seller of a product with no close substitutes.

E) Economies of ____________ exist when, as the scale of production is increased, average costs decrease.

F) A ____________   ____________ is an industry in which economies of scale are so important that only one firm can survive.

G) ____________   ____________ is many sellers of similar but differentiated products.

H) ____________   ____________ is the process of distinguishing a firm’s product from similar products.

I) ____________ is an industry dominated by a few mutually interdependent firms.

J) ____________   ____________ is the market that produces the highest output at the lowest price.

Answer 1

Total Revenue = Price * Quantity

Marginal Revenue = Total Revenue_Quantity=n -  Total Revenue_Quantity=n-1

Quantity	Price	Total Revenue	Marginal Revenue
0	22	0	-
1	20	20	20
2	18	36	16
3	16	48	12
4	14	56	8
5	12	60	4
6	10	60	0
7	8	56	-4
8	6	48	-8