21 legal rights such as patents and local state or

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21. Legal rights such as patents and local, state, or federal licenses can present formidable: a. barriers to entry. b. barriers to mobility. c. barriers to exit. d. none of these. Answer: a
22. Perfect competition is a market structure characterized by:
23. In competitive markets, the marginal-cost (MC) curve is:
24. In competitive markets, positive profits are likely to trigger:
Ch 11 25. For an individual price taker firm in a perfectly competitive industry, the demand curve for a commodity (product) is: a. upward sloping. b. downward sloping. c. horizontal. d. vertical. Answer: c
26. When demand is perfectly elastic, regulatory costs are never borne by:
27. Tradable emission permits:
28. Externalities exist when:
29. The incidence of a percentage sales tax (who pays the government?) will fall primarily on business when: a. the tax is collected from businesses. b. demand is highly elastic with respect to price. c. demand is highly inelastic with respect to price. d. the elasticity of demand equals 1. Answer: a
30. The burden of a percentage sales tax (loss of surplus) will fall primarily on business when:
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