A patent is a government imposed entry barrier

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Essentials of Economics
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Chapter 12 / Exercise 6
Essentials of Economics
Mankiw
Expert Verified
19) A patent is a government - imposed entry barrier because A) it gives a firm the exclusive right to a new product for a period of 20 years from the date the product is invented. B) it limits the quantity of a good that can be imported into a country. C) it allows a firm to achieve economies of scale. D) it is a key input owned by the firm that is granted the patent. Answer: A 19) Diff: 1 Page Ref: 462/462
Topic: Government - Imposed Barriers Learning Outcome: Micro 5: List ways in which governments intervene in markets and explain the consequences of such intervention AACSB: Reflective Thinking 5
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Essentials of Economics
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Chapter 12 / Exercise 6
Essentials of Economics
Mankiw
Expert Verified
20) An example of a government - imposed barrier to entry gives a firm the exclusive right to a new product for a period of 20 years from the date the product is invented. This entry barrier is known as C) a patent. D) a tariff. 20)
Answer: C Diff: 1 Page Ref: 462/462 Topic: Government - Imposed Barriers Learning Outcome: Micro 5: List ways in which governments intervene in markets and explain the consequences of such intervention AACSB: Reflective Thinking 21) The De Beers Company blocked competition B) because it has lower costs of producing than other department stores due to economies of 21)
scale. C) in the diamond market by controlling the output of most of the world ʹ s diamond mines. D) in the market for fresh and frozen cranberries because it controls about 80 percent of the cranberry crop. Answer: C Diff: 1 Page Ref: 462/462 Topic: Barriers to Entry Learning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies in oligopolies AACSB: 22) Of all barriers to entry, the most important are those that are due to 22) Diff: 1 Page Ref: 461/461
Topic: Barriers to Entry Learning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies in oligopolies AACSB: Reflective Thinking

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