Topic 4

Question 1

what are the four barriers to entry

Answer 1

1. a key resource is owned by the firm
2. Govt can only grant exclusive rights to produce the good or service
3. economies of scale make one producer more efficent
4. first mover advantage in a market with positive network

Question 2

Examples of a key resource is owned by the firm

Answer 2

Town in the desert and you have the only well
debears owns 90% of the worlds diamonds

Question 3

Govt can only grant exclusive rights to produce the good or service

Answer 3

Doctors need and occuptaional license
Dentist

Question 4

economies of scale make one producer more efficent

Answer 4

Infrastercture
Railways

Question 5

first mover advantage in a market with positive network

Answer 5

facebook
trademe

Question 6

Revenue Maximising

Answer 6

MR = 0

Question 7

profit Maximising

Answer 7

MR = MC