market structures test

market structures test - MarketStructuresShortAnswerTest 1.

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Market Structures Short Answer Test 1.  Barriers to entry can affect a producer’s profit.  Size of a firm can be one example of a  barrier to entry.  What else could a firm do to affect entry into the market?  Explain your  answer. By having a good capital set this will help a company get a good set into the market. 2. Since a monopoly has no competitors, can they set exorbitantly high prices? Explain. Yes the monopoly can set a higher price than necessary; they have no one to compete with so they know people will pay these prices if they want what they have. 3. Some oligopolistic markets are characterized by standardized products (for example,  steel), while others are characterized by differentiated products (for example,  automobiles).  Do you expect that these firms would act differently due to their  characteristics?
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This document was uploaded on 06/08/2011.

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market structures test - MarketStructuresShortAnswerTest 1.

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